Respuesta :
You will receive a margin call at a share price of $60.43 if the maintenance margin is 40%.
Margin Call Price = (Sales Proceeds + Initial Deposit) / [Number of Shares × (1 + Maintenance Margin)]
Proceeds from short sale = 900 × $47 = $42,300
Initial deposit = $42,300 (.80) = $33,840
Account value = $42,300 + $33,840 = $76,140
Margin call price = $76,140 / [900 × (1+.40)] = $60.43
What Is the Maintenance Margin?
Maintenance margin, or the minimum equity an investor must maintain in a margin account after a purchase has been made, is required to be established at 25% of the entire value of the assets in the account by the Financial Industry Regulatory Authority (FINRA).
What is a maintenance margin call, exactly?
When a margin call is issued by a broker, the investor is asked to increase the amount of money or securities in their account to bring it up to the Maintenance margin, which is the minimum amount that must be maintained to prevent a loss.
Learn more about Maintenance margin: https://brainly.com/question/24404424
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