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9. You have $20,000 to commit to the short sale (i.e. use it as margin deposit). You observe that shares of Omicron Technology are selling
9. You have $20,000 to commit to the short sale (i.e. use it as margin deposit). You observe that shares of Omicron Technology are selling at a price to $100 per share. Your research indicates that the shares are overvalued and should be selling for a price to closer to $85 per share. Assume that the maintenance margin is 25% and that the initial margin is 50%, what would be the expected return on investment if the shares were to sell for an ending price of $80 per share?
A) 15%
B) 30%
C) 25%
D) 40%
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