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Assume you sold short 100 shares of common stock at $40 per share. The initial...

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Question

Finance

Assume you sold short 100 shares of common stock at $40 per share. The initial margin is 50% and the maintenance margin is 20%. At what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.

A.

$40

B.

$50

C.

$33.33

D.

$75

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