You purchase 200 shares of XYZ on margin at $80 per share. You also short sell 100 shares of ABC at $30 per share. With an initial margin requirement of 70%, find your original equity:

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To find the original equity, calculate the total cost of the purchase and the proceeds from the short sale, then apply the margin requirement. The cost of purchasing 200 shares of XYZ at $80 each is $16,000. The proceeds from short selling 100 shares of ABC at $30 each is $3,000. The initial margin requirement is 70% of the total position value ($16,000 + $3,000 = $19,000), which is $13,300.

You Purchase 200 Shares of XYZ on Margin at $80