SIE Exam Question 1019: Answer and Explanation

Question: 1019

Carrie believes the share price of Zeta stock will decrease in the short term. She has decided to sell short 500 shares at the current market price of $89. If the initial margin requirement is 35%, what amount must Carrie contribute as margin?

• A. $15,575
• B. $17,250
• C. $19,925
• D. $21,485

Correct Answer: A

Explanation:

500 shares × $89 per share × 0.35 = $15,575