You shorted 1000 shares of stock A at $100/share. Assume an initial margin of 50% and maintenance

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You shorted 1000 shares of stock A at $100/share. Assume an initial margin of 50% and maintenance margin of 30%. How much can the stock price rise before you receive a margin call? Note that the minimum price change of stock A is $0.01.

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Fundamentals of Investments Valuation and Management

ISBN: 978-0077283292

5th edition

Authors: Bradford D. Jordan, Thomas W. Miller

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Posted Date: May 30, 2023 02:33 AM

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You shorted 1000 shares of stock A at $100/share. Assume an initial margin of 50% and maintenance

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To determine how much the stock price can rise before you receive a margin call we need to calculat... View the full answer

Fundamentals of Investments Valuation and Management

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