You tell your broker to sell 1,000 shares at $100 ($100,000) and 50% margin requirement on short
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Question:
You tell your broker to sell 1,000 shares at $100 ($100,000) and 50% margin requirement on short sales. You have $50,000 T-bills. If maintenance margin on short sales = 30%. This means the equity in your account must be at least 30% of the value of your short position at all times. How far could the stock price rise before the investor would get margin call?
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