Your friend frankie sells 400 shares of walsh industries, Ask an Expert

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Your friend Frankie sells 400 shares of Walsh Industries short at $60.00 per share. The current margin requirement, per the Federal Reserve, is 50%. Assume that the stock decreases in price to $50.00 per share six months later and Frankie closes out his position. Based on the above fact pattern:

(A) What was Frankie's initial margin requirement related to this investment in Walsh Industries?

(B) What was the dollar amount AND percentage gain or loss on Frankie's initial margin when he closed out his position?

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Financial Management, Finance

Category:- Financial Management
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