You short sell 500 shares of yahoo stock at a price of 23, Ask an Expert

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You short sell 500 shares of Yahoo stock at a price of $23 per share, using the full initial margin of 50%. After a surprisingly positive earnings announcement, the stock price rises to $31 per share. Your broker immediately gives you a margin call and requests that you add additional cash to your position to get back to the required maintenance margin level of 35%. How much cash do you need to add to your account?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91420376

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