You Sell Short 100 Shares of Hi-Light Corporation When It

question 69

Multiple Choice

You sell short 100 shares of Hi-Light Corporation when it is trading at $70. Your margin requirement is 50 percent. Assuming there was no commission and the maintenance margin is 25 percent, at what stock price would you receive a margin call?

• A) $76
• B) $80
• C) $84
• D) $88
• E) $92

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Definitions:

Behavior Modification

Behavior modification is the use of empirical and methodical techniques to change behavior, typically using reinforcement or punishment.

Progressive Relaxation

A method of reducing stress and anxiety by tensing and then relaxing each muscle group in the body sequentially, promoting physical and mental relaxation.

Positive Reinforcers

Stimuli that, when introduced after a behavior, increase the likelihood of that behavior being repeated in the future.

Operant Conditioning

An educational process that controls the potency of an action through the deliverance of rewards or the administration of punishments.