You Short Sold 600 Shares of a Stock at $48

question 46

Multiple Choice

You short sold 600 shares of a stock at $48 a share.The initial margin requirement is 60 percent and the maintenance margin is 30 percent.What is the amount of your total liability for this transaction as initially shown on your account balance sheet?

• A)$8,640
• B)$17,280
• C)$22,210
• D)$28,800
• E)$37,440

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Definitions:

Tactics

Short-term actions or strategies that are used to achieve a specific objective, often part of a larger strategy or plan.

Scenario Analysis

A process in strategic planning where various future states of the market or environment are evaluated to prepare or formulate strategies.

Process

A series of actions or steps taken in order to achieve a particular end.

Current Strategies

The existing plans and approaches that a business is using to achieve its objectives and overcome challenges.