You sell short 1,000 shares in Omega Corporation at $20 per share and give your broker...

You sell short 1,000 shares in Omega Corporation at $20 per share and give your broker $12,000 to establish a margin account.

a.) What is the margin (%) in the account at the time of sale?

b.) If the maintenance margin is 25%, how high will the price of Omega stock have to rise for you to receive a margin call?

Expert Solution

jeff jeffy answered 8 months ago

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