1 an investor opens a new margin account and sells short, Ask an Expert

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1. An investor opens a new margin account and sells short 200 shares of DWQ at $65 per share, with Regulation T at 50%. What is the investor's required deposit? Please show all work.

A. $2,775

B. $3,250

C. $6,500

D. $13,000

2. A customer purchases 200 shares of ABC Health Care at $60 per share and meets the initial margin requirement. If ABC announces an acquisition and its stock appreciates on the news to $75 per share, how much cash can the customer withdraw after this market move? Please show all work.

A. $0

B. $1,000

C. $1,500

D. $3,000

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92296850

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