Suppose that you just short sold 100 shares of XYZ stock for $79.00 per share. a. If the initial margin requirement is 60%, how much equity must you invest?

Question

asked Oct 23, 2021 173k views

1 Answer

Bunarro · Answer 1 · 2021-10-27T11:03:19+0000

Answer:

$4,740

Step-by-step explanation:

Equity to invest = Initial margin × shares short sold × Value of stock sold per share

= 60% × 100 × $79

= $4,740