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2. Suppose that you sell short 1,000 shares of Haman, currently selling for $20 per share, and give your broker $15,000 to establish your margin
2. Suppose that you sell short 1,000 shares of Haman, currently selling for $20 per share, and give your broker $15,000 to establish your margin account. a. If the maintenance margin is 25%, how high can Haman's price rise before you get a margin call? b. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if Haman stock is selling at: (i) $22; (ii) $20; (iii) $18? Assume that Haman pays no dividends
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