Today,you Short Sold 1,100 Shares of Jasper Industrial Stock at $48

question 52

Multiple Choice

Today,you short sold 1,100 shares of Jasper Industrial stock at $48 a share.The initial margin is 60 percent and the maintenance margin is 30 percent.Which one of the following is correct concerning your account balance sheet for this transaction?

• A) You have an asset of $31,680 from the sale proceeds.
• B) You have a liability from the short position of $21,120.
• C) Your account equity is $21,120.
• D) Your initial margin deposit is $15,840.
• E) Your total assets are $84,480.

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Definitions:

Enhance Profits

Strategies or actions taken by a business to increase its net earnings.

Imitation

The act of copying or mimicking the features, designs, or actions of another product, service, or behavior, often with the intention of capturing value or recognition.

Technological Advances

Improvements in technology, which typically lead to more efficient production processes, new products, or improved ways to perform tasks.

Diffusion

The process through which new ideas, products, or practices spread within a population or society.