Answer:
$1,000
Explanation:
In an existing margin account, If a customer sells short 100 shares of ABC at $45, the selling price of 100 shares will be $45 × 100 = $4,500
If at the end of the day, the stock is valued at $35, then the price of the stock at the end of the day will be $35×100 = $3,500
Margin requirement = difference between the stock price and selling price.
Margin requirement = $4,500-$3,500
Margin requirement = $1,000
