The price of Apple stock is currently $96.89 and you decide to sell short 540 shares. The inital margin is 60%.

Part 1

What's the minimum amount of money you must contribute to the account to satisfy the initial margin requirement?

Expert Solution

Current Price of share = 96.89

No of shares shorted = 540

Value of shres shorted = 540 * 96.89 = 52320.6

Initial Margin = 52320.6 * 60% = 31392.36

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jeff jeffy answered 2 years ago

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