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19 June, 23:23

You sold short 100 shares of common stock at $45 per share. The initial margin is 50%. At what stock price would you receive a margin call if the maintenance margin is 35%?

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  1. 20 June, 00:59
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    The answer is $50

    Explanation:

    100 (45) * 0.5 + 4500 = $6750

    [6750-100x] / 100x = 0.35

    6750 = 135x

    x = $50
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