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2 You decide to sell short 100 shares of Singsang Plantation when it is selling at market price of RM56. Your broker tells you

  



2 You decide to sell short 100 shares of Singsang Plantation when it is selling at market price of RM56. Your broker tells you that your margin requirement is 45%. Required: a) What is your initial margin? b) One you later you buy back Singsang at RM45 to close out your position. While you short the stock, Singsang pays a RM2.50 the dividend. What is your rate of return? At what price you will receive a margin call?

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