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4. ABC Corp shares trade at $60 and you short 500 shares. The initial margin is 50% and your broker has a 35% maintenance margin.

4. ABC Corp shares trade at $60 and you short 500 shares. The initial margin is 50% and your broker has a 35% maintenance margin.

(A) If the stock price rises to $65, what is your percentage margin?

(B)How far can the stock price rise before a margin call?

Please include any work associated

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