1. Louisa short sold 700 shares of Celpa stock at $35 a share at an in

1. Louisa short sold 700 shares of Celpa stock at $35 a share at an initial margin of 55 percent. The maintenance margin is 30 percent. (5 points)a. Construct a balance sheet depicting this transaction. Label each item such as Equity and so on.b. What is your equity value if stock goes up to $40 per share? What is the new margin?c. What is the highest price the stock can go before she receives a margin call?

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1. Louisa short sold 700 shares of Celpa stock at $35 a share at an in

1. Louisa short sold 700 shares of Celpa stock at $35 a share at an initial margin of 55 percent. The maintenance margin is 30 percent. (5 points)a. Construct a balance sheet depicting this transaction. Label each item such as Equity and so on.b. What is your equity value if stock goes up to $40 per share? What is the new margin?c. What is the highest price the stock can go before she receives a margin call?

3 Simple steps to get your paper done

Step 1

Step 2

Step 3

Place Order Down to work Paper is Ready!

Takes just a few minutes!

Best writer takes the order

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