Rylee Short Sold 600 Shares of Stock at $16

question 28

Multiple Choice

Rylee short sold 600 shares of stock at $16.25 a share.The initial margin is 75 percent and the maintenance margin is 50 percent.The stock is currently selling for $19.50 a share.What is Rylee's account equity at this time? Ignore margin interest.

• A) $1,070.75
• B) $3,590.25
• C) $5,362.50
• D) $8,950.00
• E) $10,510.35

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Definitions:

Few Firms

A market condition characterized by a small number of companies, often leading to an oligopolistic competition where each firm's actions can significantly impact the market.

Economic Profits

The difference between total revenues and total explicit and implicit costs.

Monopolist

A monopolist is a sole provider of a product or service in a market, possessing significant market power to set prices above competitive levels due to lack of competition.

Perfect Competition

A market structure characterized by an infinite number of small firms, homogeneous products, free entry and exit, and perfect information, leading to firms being price takers.