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A trader shorts 5 0 0 shares of a stock when the price is K 5 0 . The initial margin is 1 6 0

A trader shorts

500

shares of a stock when the price is K

50 .

The initial margin is

160 %

and maintainance margin is

130 % .

How much margin is required feom the investor initially?How high does the price of the stock have to rise for there to be a margin call?

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