Question

In: Finance

You shorted 1,000 shares of MSFT at $215 a share. You got a margin call sometime after 3 months.

You shorted 1,000 shares of MSFT at $215 a share. You got a margin call sometime after 3 months. The MM is 35%. What must be the stock price?----- Nothing is missing, all info is here.

Solutions

Expert Solution

Assumption intial margin is 100%

then Initial magin = $215000

MM = .35* $215000 = 75250

Stock price = $75.25


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