Cash or securities to be put into brokerage account

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Reference no: EM131320525

You are bearish on Telecom and decide to sell short 260 shares at the current market price of $90 per share.

a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? (Omit the "$" sign in your response.)

Cash or securities to be put into brokerage account $

b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Margin call will be made at price $ or higher

Reference no: EM131320525

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