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Question: You sold short 400 shares of ABC stock at $75 a share. The initial margin is 50 percent and the maintenance margin is 30 percent. The stock is currently selling for $65 a share. Ignore margin interest and transaction costs.

(a) What is the current % margin position?

(b) If you cover the short position today, what is your return with the short sales?

(c) What is the critical price for a margin call?

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  • Reference No.:- M92764918

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