Suppose that you just short sold 100 shares of Quiet Minds stock for $85.00 per share.
a. If the initial margin requirement is 65%, how much equity must you invest?
b. Construct the balance sheet that corresponds to the transaction.
c. Now suppose the price of the stock falls to $77 per share. What is your current margin percentage?
d. The maintenance margin is 40%. Whats the lowest pnco that will trigger a margin call?

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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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