Assume you sold short 100 shares of common stock at $40 per share. The initial margin is 50%. What would be the maintenance margin if a margin call is made at a stock price of $50?
A) 40%
B) 20%
C) 35%
D) 25%

Question

Quizplus · Accepted Answer

The Answer of Assume you sold short 100 shares of common stock at $40 per share. The initial margin is 50%. What would be the maintenance margin if a margin call is made at a stock price of $50?
A) 40%
B) 20%
C) 35%
D) 25%

Assume You Sold Short 100 Shares of Common Stock at $40