Podcast
Questions and Answers
How much money will you receive from the initial short sale?
How much money will you receive from the initial short sale?
You will receive $7,500 from the initial short sale (200 shares * $75 per share * 50% initial margin requirement).
What will your profit or loss be when you close out the short position at $60 per share?
What will your profit or loss be when you close out the short position at $60 per share?
Your profit will be $1,500 when you close out the short position at $60 per share ($7,500 initial sale - $6,000 to cover position).
How much money will you need to cover your short position?
How much money will you need to cover your short position?
You will need $6,000 to cover your short position (200 shares * $60 per share).
