Question

You sold short 200 shares of common stock at $60 per share. The initial margin is 60%. Your initial investment was

Answer 1

Answer:

The answer is $4,800

Explanation:

200 shares was sold short at $60 per share with initial margin of 60 percent.

200 shares x $60 per share x (1 - 0.6)

=$12,009 x 0.4

$4,800

The initial investment is therefore, $4,800(four thousand and eight hundred dollars)