You sold short 100 shares of common stock at $45 per share.The initial margin is 50%.At what stock price would you receive a margin call if the maintenance margin is 35%?

Question

Quizplus · Accepted Answer

The margin call price can be calculated using the formula: P = (Initial Price * (1 + Initial Margin)) / (1 + Maintenance Margin). Plugging in the values: P = (45 * 1.5) / 1.35 = $50.

You Sold Short 100 Shares of Common Stock at $45