Short sales show workyou sold short 1000 shares of jp, Ask an Expert

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Short Sales (show work)

You sold short 1000 shares of J.P Morgan Chase stock (ticker: JPM) at $60 per share. The initial margin is 50%.

a)At what stock price would you receive a margin call if the maintenance margin is 30%? (do not consider dividends in question a)

b)Assume that the JPM stock paid a $0.40 dividend per share each quarter, what is the rate of return if you buy to cover the JPM shares at $39 per share at the end of the quarter?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92822348

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