You Sold Short 300 Shares of Common Stock at $55

question 56

Multiple Choice

You sold short 300 shares of common stock at $55 per share. The initial margin is 60%. At what stock price would you receive a margin call if the maintenance margin is 35%?

• A) $51.00
• B) $65.19
• C) $35.22
• D) $40.36

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Definitions:

Detent Position

A mechanical feature that locks a moving part in a specific position, often found in gear selectors to hold gears in place.

1st-Reverse Rail

A component in manual transmission systems, engaging the gear mechanism for the first or reverse gears.

Conversion Cost

The combined cost of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.

Book Value

The net value of a company's assets minus its liabilities and intangible items, as stated on the balance sheet.