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You are bearish on Telecom and decide to sell short 180 sharesat the current market price of $70 per share. a. How much in cashor securities must you put into your brokerage account if thebroker's initial margin requirement is 50% of the value of theshort position? (Round your answer to the nearest whole number.) b.How high can the price of the stock go before you get a margin callif the maintenance margin is 30% of the value of the shortposition?
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