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Assume you bought 100 shares of common stock at $70 per share. The initial margin is 50%. What would be the maintenance margin if a

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Assume you bought 100 shares of common stock at $70 per share. The initial margin is 50%. What would be the maintenance margin if a margin call is made at a stock price of $55? Select one: O 36.4% O 57.1% O 63.6% 0 28.6% O 40.5% Consider a binomial tree with one future period (T=0,1) in which the price can go up to 27 or decrease to 16. The price of the asset at T=0 is 20, and there is an equal chance that it goes up or down at T=1. The investor starts with an initial wealth of $1,000. The risk-free asset yields a return of zero percent. What is the wealth of the investor at T=1 if the asset price drops, and the investor short-sells and takes a negative position on the risky asset equal to $1,800? Select one: O-840 None of the options provided O 840 0-1360 0 1360

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