BU111 Final: Final Exam Review
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BU111 Full Course Notes
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You pay some and borrow the rest: the amount you have to pay is the margin requirement, interest, requirement is 75% (broker is willing to lend up to 25% of. Selling short 700 shares of xyz on may 1st and the price is . 50. You receive a margin call on june 15th when the stock rises to . 00 and you you cover with a price of . 00. What is your yield: sold 700 @ . 50, bought 700 @ . 00. 2% of buy and 2% of sell: -, -, capital gain: ,150 22,400 448 483 = . You have to pay 150% of market value which is ,075. Therefore, your account balance is 24250 + 12075 = ,225: 140% of current market value is ,200 but we only have. ,225 in the account therefore, our margin call is the difference of what we are missing in the account (39200-36225 = ,975)
