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Assume that your brokerage company requires an initial margin of 60% and a maintenance margin of...

Assume that your brokerage company requires an initial margin of 60% and a maintenance margin of 35%. Assume further that you short 800 shares of Jellyfish Corp. at $40 per share and the price increases to $56.

a. Calculate your percentage loss based on your current and initial equity.

b. Calculate the percentage change in the value of the stock.

c. Show the account balance sheet if you use funds from your account to buy securities and decrease the loan.

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jeff jeffy answered 2 years ago
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