Quiz 5 2010 - A. How high can the stock go before receiving...

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DePaul University Name______________________________ Winter Quarter, 2010 FINANCE 330 INVESTMENT ANALYSIS QUIZ 5 1. The first day of the year, you sell short 1,000 shares of Going Down at $100 per share. Going Down paid a $1 dividend during the year. Your broker requires a 50% initial margin, and a 30% maintenance margin.
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Unformatted text preview: A. How high can the stock go before receiving a margin call? B. If, after receiving a margin call, you are required to bring your account back up to 50% margin, how much would you have to add to your account after you received your margin call? (4 points)...
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This note was uploaded on 09/26/2011 for the course FIN 334 taught by Professor Fin334 during the Winter '10 term at Ill. Chicago.

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