Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. please show all work and formulas. you are bea

Please show all work and formulas. You are bearish on Apple...

80.2K

Verified Solution

Question

Finance

Please show all work and formulas. image
You are bearish on Apple Stock and decide to short sell the stock. You sell 3000 shares at $20/share You are required to post an initial margin of 50%, and pay in maintenance margin if the margin level drops below 30%. a. Within hours after you sell short, the stock climbs to $23/share. What is your current margin rate? b. How high can the stock rise in price before you get a margin call? c. The stock rises to $26/share. How much cash will you need to deposit in your account to bring the margin rate up to 30%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

A small solid sphere of mass M0, of radius R0, and of uniform density ρ0 is...

Biology
1.2K views

More than one of these Dead organisms O Living organisms Nothing they produce their own...

Geometry
1.2K views

4z 3z 7 3 z 5z 2 If the expression above is rewritten in the...

Geometry
1.2K views

Find the value of x in the figure below 100 125 3x 45 140 100...

Geometry
1.2K views

What is the volume of the cylinder below A 968 units OB 352 units OC...

Geometry
1.2K views

2 15 PM Grade Results My Activities Tell me what you want to do Q...

Basic Math
1.2K views

A drill is used to dig down into the earth. After 2 hours, the drill...

Accounting
1.2K views

INVENTORY AT DEC 2021 = $57,000 INVENTORY AT DEC 2022 = $64,800 Inventory valued...

Accounting
1.2K views

Need to check my answers. Answer with steps and terminology please! Required information...

Accounting
1.2K views

iater Company operates a small manufacturing facility. On January 1, 2021, an asset account for...

Accounting
1.2K views

BUSINESS LAW Danny woke up at 7:50am and realized that his employer had a...

Accounting
1.2K views

5) Refer to the following selected financial information from McCormik, LLC. Compute the company's acid-test...