Lets say you short sell 500 shares of xyz corporation when, Financial Management

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Lets say you short sell 500 shares of xyz corporation when

Let's say you short sell 500 shares of XYZ corporation when its price is $40 per share. The IMR is 45%, The MMR is 25%, and the broke charges 9% per year on borrowed funds. If within three months, the price of XYZ rises to $58 per share; will you be faced with a margin call? Explain why or why not using suitable calculations. Calculate the amount of the margin call (if any) that would be issued to a new as well as an established client.

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Financial Management: Lets say you short sell 500 shares of xyz corporation when

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Financial Management: Lets say you short sell 500 shares of xyz corporation when

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