单选题
Helen Alba and Kobin Lubis have deferring views on the future performance of U-Cite. Consequently, Alba has taken a short position while Lubis has purchased the stock on margin. The relevant details are as follows:
Market price per share: $42
Number of shares purchased: 1000
Holding period: 1 year
Ending share price: $50
Initial margin requirement: 45%
Maintenance margin: 30%
Transaction and borrowing cost: $0
Alba and Lubis will receive margin calls at a stock price of:
Alba Lubis
①A. $37.66 $53.45
②B. $46.85 $53.45
③C. $46.85 $33.00
A. ①B. ②C. ③
【正确答案】
C
【答案解析】Calculations are as follows:
Since Alba is short (sold the stock), the formula for the margin call price is:
Margin Call = (original price)×(1 + initial margin)/( 1 + maintenance margin) =$42×(1+0.45)/(1+0.30) =$46.85.
Since Lubis is long (purchased the stock) , the formula for the margin call price is:
Margin Call = (original price)×(1 - initial margin)/(1 - maintenance margin)=$42×(1-0.45)/(1-0.30)=$33.00.