You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks. Your broker requires

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You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks. Your broker requires a maintenance margin of 30 percent. Which of the following is the lowest value for the stocks you are holding short for which you will still receive a margin call?

a. $260,000

b. $240,000

c. $220,000

d. $200,000.

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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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