Answer: Signature liability
Explanation:
The signature liability is basically associate with the negotiable instruction as the people are not contractually liable only the signature person has the liability for the payment based on the specific amount.
The signature liability is basically refers to the signature on the negotiable instrument that is used for identifying the main person who ar obligated for paying. Therefore, Signature liability is the correct answer.
Answer:
No of stock = 1100
Price of Stock = 29
Short sale = 31900
Initial Margin % = 55%
Initial Margin = 17545
Total value = 49445
The earnings of the sale is 31900, which is deposited in our account for a total account value of $49,445 (31900+55%)
Maintenance Margin = 40%
Margin Call Value = 49445/ (1+0.4)
Margin Call Value = 35317.86
Price per share = 35317.86 / 1100
Price per share = 32.11
So a margin call will be triggered when the price of the shorted security rises to $32.11
Margin Call Price = 32.11
Account Equity = 32.11*1100
Account Equity = 35318
The answer is : b. An externality
The example of an Externality is air pollution from Car emission
The air pollution is not technically covered and intended by the car manufacturing company , but it harm a third party ( civilians) who do not involved in the car production
