Margin Position in a Stock After a Short Sale
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Recently, you sold 1,000 shares of stock for $21,400. The sale was a short sale with an initial margin requirement of 60 percent. The maintenance margin is 30 percent. The stock is currently trading at $27.50 a share. What is your current margin position in this stock?
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Solution Summary
The solution determines a margin position in stock after a short scale.
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We have,
Shares sold=1,000
Value of the stock=$21,400
Price per share=$21.4
Initial margin ...
Education
- MBA, Indian Institute of Finance
- Bsc, Madras University
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