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Assume that you instead decided to short as many shares as possible of NFLX at market close on January 2nd (Price $201.07). The broker requires a 60% margin on short sales and has a 40% maintenance margin.

a. How many shares did you short sell?

b. Set up your personal balance sheet following the transaction.

c. Set up your personal balance sheet as of market close on 1/29/18 (assuming no margin call)(Price $284.59).

d. Would you have received a margin call? What price would this occur at?

e. If the margin call came after market close on 1/23/18(Price $250.29), how much additional cash would you need to deposit to reach the maintenance margin and maintain your position for at least another day?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92799924

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