Answer to Question #165075 in Finance for Rochelle Williams

Question #165075

You want to increase your position in XYZ Inc. The current share price is $10. You need a margin deposit of 20% to open the position. If you put down $1000 to open the trade, how many shares do you have exposure to?


1
Expert's answer
2021-02-22T14:02:39-0500

If you put down $1000 to open the trade, then you have to exposure "N = \\frac{1000} {10\u00d70.2} = 500" shares.


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