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Assume You Sold Short 100 Shares of Common Stock at $40

Question 48

Multiple Choice

Assume you sold short 100 shares of common stock at $40 per share. The initial margin is 50%. What would be the maintenance margin if a margin call is made at a stock price of $50?


A) 40%
B) 20%
C) 35%
D) 25%

Correct Answer:

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