Question

Suppose that you just short sold 100 shares of XYZ stock for $79.00 per share. a. If the initial margin requirement is 60%, how much equity must you invest?

Answer 1

$4,740

Step-by-step explanation:

Equity to invest = Initial margin × shares short sold × Value of stock sold per share

= 60% × 100 × $79

= $4,740