You sold short 200 shares of common stock at $60 per share.The initial margin is 60%.Your initial investment was

Question

Quizplus · Accepted Answer

To calculate the initial investment, we need to multiply the number of shares sold short by the price per share and the initial margin, which is represented as follows:
Initial Investment = Number of shares sold short x Price per share x Initial Margin
Plugging the given numbers into the formula, we get:
Initial Investment = 200 x $60 x 0.60
Initial Investment = $7,200
Therefore, the correct choice is D.

You Sold Short 200 Shares of Common Stock at $60