You short sell 500 shares of yahoo stock at a price of 23


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?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: You short sell 500 shares of yahoo stock at a price of 23
Reference No:- TGS01130781

Expected delivery within 24 Hours