Bubba sells short 100 XYZ at $60 and makes the required Regulation T deposit of 50%. XYZ then rises I price to $65. At this point what is the credit balance?
A)$2,500
B)$3,500
C)$6,000
D)$9,000

Question

Quizplus · Accepted Answer

$9,000. Credit balances in short accounts do not change because of fluctuation in market prices. The initial deposit of $3,000 ($6,000 x 50%) plus the $6,000 from the short sale leave a credit balance of $9,000.

Bubba Sells Short 100 XYZ at $60 and Makes the Required