You Sell Short 100 Shares of Hi-Light Corporation When It

question 13

Multiple Choice

You sell short 100 shares of Hi-Light Corporation when it is trading at $70.Your margin requirement is 50%.Assuming there was no commission and the maintenance margin is 25%,at what stock price would you receive a margin call?

• A) $76
• B) $80
• C) $84
• D) $88
• E) $92

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Definitions:

Radical Equation

An equation in which the unknown variable appears under a radical sign, requiring specific methods to isolate and solve.

Square Root

A square root of a number is a value that, when multiplied by itself, gives the original number, symbolized as √.

Radical Equation

An equation in which the variable is contained inside a radical, often a square root.

Square Root

A number that, once squared, equals the number it originated from.