Calculation margin call of excess margin

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Amanda thinks Rogers Corp stock is about to take a tumble. No one has cable anymore! People just watch shows on the internet! Why would anyone pay for cable?? Amanda decides that she can profit from this and has entered into a short selling arrangement on 276 of Rogers common shares. Rogers stock is currently selling for $64 per share. If Amanda's broker requires a margin of 135%, calculate the margin call or excess margin if the price of Rogers stock rises to 68.85. Remember you have to calculate initial margin before you can calculate the excess or call on a price change.

Is the calculation Margin Call of Excess margin?

Reggie has entered into a short selling arrangement on Organigram stock. He thinks the market has overpriced the stock and wants to profit from the price drop he thinks is coming. His short sale arrangement is on 157 shares. Organigram's stock is selling at $2.84 per share. Reggie's broker requires a margin of 150% on the position. Calculate the excess margin or margin call for Reggie if the stock's price drops to $1.99. Remember you have to calculate initial margin before you can calculate the excess or call on a price change.

Is the calculation Margin Call of Excess margin?

Reference no: EM133036857

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