You Just Sold 1,200 Shares of Stock Short at a Price

question 25

Multiple Choice

You just sold 1,200 shares of stock short at a price per share of $13.50.The initial margin requirement is 60 percent and the maintenance margin is 30 percent.What is your initial equity position?

• A) $6,480
• B) $7,520
• C) $9,720
• D) $10,520
• E) $16,200

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Definitions:

Interaction Effect

A situation in statistical analysis where the effect of one independent variable on the dependent variable is different at different levels of another independent variable.

Main Effect

The effect of an independent variable on a dependent variable, isolated from other variables in an experimental study.

Simple Effect

The effect of one independent variable at a particular level of another independent variable in a factorial design.

Factorial Research

Factorial research involves experiments that study the effects of more than one independent variable at a time on a dependent variable.