You Short Sold 500 Shares of Jasper Stock at $41

question 1

Multiple Choice

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

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

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Definitions:

Confidence Interval Estimate

A range of values derived from sample statistics that is likely to contain the value of an unknown population parameter, with a certain level of confidence.

99%

Often refers to a confidence level in statistics, indicating that there is a 99% chance the results fall within a specified range.

Two Proportions

A statistical comparison between two population proportions to determine if there is a significant difference.

Independent Samples T-Test

A statistical test used to determine if there are significant differences between the means of two unrelated groups on a continuous outcome.