The current market price of stock a is 20 per share i sell


The current market price of stock A is $20 per share. I sell short 100 shares with initial margin requirement of 50%. One year later, the stock price is 18$ and paid dividend equal to $1 per share. At what price will I get a margin call, assuming that the minimum margin requirement is 40% and the price change is immediate?

Request for Solution File

Ask an Expert for Answer!!
Financial Econometrics: The current market price of stock a is 20 per share i sell
Reference No:- TGS0668082

Expected delivery within 24 Hours