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Problem:

The stock of Flop Industries is trading at $29. You feel the stock price will decline, so you short 1,300 shares at an initial margin of 50 percent. If the maintenance margin is 35 percent please find,

Question:

What share price will you receive a margin call?

Justify your answer.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91145653

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