Compute for the critical price

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Problem 1: You have tresury bill amounting to 65000 in your account you want to short sell 1000 at 1.25 per share of company B. Supposed the broker has 50% initial margin. Create balance sheet and compute your margin. Assume that the price per share of company B. falls by 25% create balance sheet and your margin if you cover your short. supposed the price of the share is to increased by 62% from the fall. Create balance sheet and compute your margin. Supposed the price of the share is to increased by 62% by the fall. Will you receive a margin call if the maintenance margin by the broker is 45%? Compute forthe critical price!

Reference no: EM132662462

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