You believe that the stock of Cara Corporation is overpriced and decide to sell 1,000 shares...
- You believe that the stock of Cara Corporation is overpriced and decide to sell 1,000 shares short at $80. You have posted 50% margin as required.
- If the stock price drops to $70 per share, what will be the percentage margin on your account?
- If the stock price increases to $90 per share, what will be the percentage margin on your account?
- How much can the stock price rise before a margin call if the maintenance margin is 25%?
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You believe that the stock of Cara Corporation is overpriced
and decide to sell 1,000 shares...
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