Question you are bearish on telecom and decide to sell, Ask an Expert

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Question: You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share.

a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position?

b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position?

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92781989

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