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You sold short 100 shares of common stock at $45 per share. The initial margin is 50%. At what stock price would you receive a margin call if the maintenance margin is 35%?

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kaympoey08

Answer:

The answer is $50

Explanation:

100(45) * 0.5 + 4500= $6750

[6750-100x] / 100x = 0.35

6750 = 135x

x = $50

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