You Short Sold 500 Shares of Jasper Stock at $41

question 52

Multiple Choice

You short sold 500 shares of Jasper stock at $41 a share at an initial margin of 60%. What is the highest the stock price can go before you receive a margin call if the maintenance margin is 40%.?

• A)$46.86
• B)$47.08
• C)$55.50
• D)$56.90
• E)$57.40

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Definitions:

Debits

Accounting entries that increase asset or expense accounts or decrease liability, equity, or revenue accounts.

Credits

Entries made on the right side of an account in double-entry bookkeeping, which decrease assets or increase liabilities and equity.

Classified Balance Sheet

A balance sheet that organizes a company's assets, liabilities, and equity into subcategories for clearer understanding.

Balance Sheet

A financial report detailing a company's assets, liabilities, and equity at a particular moment, serving as a foundation for calculating return rates and assessing its financial structure.