You believe that Rose, Inc., stock is going to fall and you’ve decided to sell 7

Question

You believe that Rose, Inc., stock is going to fall and you’ve decided to sell 700 shares short. If the current share price is $48, construct the equity account balance sheet for this trade. Assume the initial margin is 100 percent. (Input all amounts as positive values. Omit the "$" sign in your response.)

You believe that Rose, Inc., stock is going to fall and you’ve decided to sell 700 shares short. If the current share price is $48, construct the equity account balance sheet for this trade. Assume the initial margin is 100 percent. (Input all amounts as positive values. Omit the "$" sign in your response.)

Explanation / Answer

assets   Liabilities and account equity

proceesds from sale 33600 short position 33600

intial margin (100%) 33600 account equity 33600

total 67200 total 67200

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