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. ①
B. ②
C. ③
参考答案：C
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.