Question: Please explain why! I want to learn and not just the answer! Thank you! Suppose initial margin rate is 50% and maintenance margin rate is

Please explain why! I want to learn and not just the answer! Thank you!

Suppose initial margin rate is 50% and maintenance margin rate is 30%. The current stock price is $25. You short sell 10,000 shares. What is the initial margin dollar amount? (Ignore interests from the proceeds and loan fees.) 1) $125,000 2) $135,000 3) $145,000 4) $155,000 5) $165,000

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