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4. Given by the prediction about the fall in price of share Y, Company X opened an account in order to short-sell 2.000 shares of

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4. Given by the prediction about the fall in price of share Y, Company X opened an account in order to short-sell 2.000 shares of Company Y. This action required a 40% margin to be executed (margin account pay no interest). After one year, the price of Y has risen from 20$ to 30$ and the board of directors of Y has agreed to the dividend of 2$ per share. a. What is the remaining margin in the account? b. If the maintenance margin requirement is 30%, will X receive a margin call? c. What is the rate of return on the investment? d. At which price, Company X would receive a margin call

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