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4. You are bearish on Google stock and decide to sell short 20 shares at the current market price of $1500 per share. (a) How
4. You are bearish on Google stock and decide to sell short 20 shares at the current market price of $1500 per share.
(a) How much cash must you put into your brokerage account if the brokers initial margin requirement is 50% of the value of the short position?
(b) How high can the stock price rise before you get a margin call if the maintenance margin is 20%?
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