Jennifer Believes That Northern Wine Stock Is Going to Decline

question 63

Multiple Choice

Jennifer believes that Northern Wine stock is going to decline in value so she is short selling 1,000 shares at $32 a share.Her initial margin requirement is 70 percent and the maintenance margin is 30 percent.What is the highest the stock price can go before she receives a margin call?

• A) $38.97
• B) $40.15
• C) $41.85
• D) $43.75
• E) $45.77

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Definitions:

Finiteness of Rejection

The concept that rejection has a limited impact over time, helping individuals to recover and move forward from setbacks.

Natural Consequence

The outcome that naturally follows an action or behavior without any external intervention.

Non-Being

A philosophical concept referring to the absence or negation of being or existence.

Death Instinct

In psychoanalytic theory, an underlying drive towards death, self-destruction, or the return to an inorganic state, as opposed by the life instincts.