8) Annalists of UBS Group (offers both wealth management and asset management services) believe the price for shares of TopBuild Corp. will go down in the near future. It was decided to sell short 10,000 shares of TopBuild Corp. at the current market price of USD 257 per share. The initial margin requirement is 60 percent. Which of the following statement is the most accurate regarding the proceeds from the short sale and the margin requirement that UBS Group is subject to on this short sale? Select one: He will need to leave the proceeds from the short sale USD 2,570,000 and contribute USD 1,542,000 as margin. He will only need to contribute USD 1,542,000 as margin. He will need to leave the proceeds from the short sale USD 2,570,000 and contribute USD 1,028,000 as margin. He will only need to contribute USD 1,028,000 as margin. He will only need to leave the proceeds from the short sale (USD 2,570,000) as deposit and does not need to contribute any additional funds. Given that this is a sale, there is no need neither to leave the proceeds nor contribute any funds in the form of initial margin.
8)
Annalists of UBS Group (offers both wealth management and asset management services) believe the price for shares of TopBuild Corp. will go down in the near future. It was decided to sell short 10,000 shares of TopBuild Corp. at the current market price of USD 257 per share. The initial margin requirement is 60 percent.
Which of the following statement is the most accurate regarding the proceeds from the short sale and the margin requirement that UBS Group is subject to on this short sale?
He will need to leave the proceeds from the short sale USD 2,570,000 and contribute USD 1,542,000 as margin.
He will only need to contribute USD 1,542,000 as margin.
He will need to leave the proceeds from the short sale USD 2,570,000 and contribute USD 1,028,000 as margin.
He will only need to contribute USD 1,028,000 as margin.
He will only need to leave the proceeds from the short sale (USD 2,570,000) as deposit and does not need to contribute any additional funds.
Given that this is a sale, there is no need neither to leave the proceeds nor contribute any funds in the form of initial margin.
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