You believe that Rose, Inc., stock is going to fall and you’ve decided to sell 4

Question

You believe that Rose, Inc., stock is going to fall and you’ve decided to sell 400 shares short. If the current share price is $78, construct the equity account balance sheet for this trade. Assume the initial margin is 100 percent. (Input all amounts as positive values. Omit the "$" sign in your response.)

You believe that Rose, Inc., stock is going to fall and you’ve decided to sell 400 shares short. If the current share price is $78, construct the equity account balance sheet for this trade. Assume the initial margin is 100 percent. (Input all amounts as positive values. Omit the "$" sign in your response.)

Explanation / Answer

Assets Amount($) Liabilities & Account Equity Amount ($) Proceeds from sale (400*78) 31200 Short Position (400*78) 31200 Initial Margin Deposit (31200*100%) 31200 Account Equity 31200 Total 62400 Total 62400

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