Business
Business, 22.02.2021 19:00, gabby1274

You have decided to short 125 shares of Shake Shack, which is currently trading for $160 per share. Assume your account already has $50,000 in t-bills which you can use as collateral. For short sales, your broker requires an initial margin of 50% and a maintenance margin of 30% and you must also set aside 100% of the cash proceeds as collateral. By how much could the stock price increase before you receive a margin call? a. $202.73
b. $161.25
c. $176.92
d. $184.62
e. $192.45

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Answers: 2

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You have decided to short 125 shares of Shake Shack, which is currently trading for $160 per share....

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