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Consider the following short sale example: an investor borrows 100 shares of a stock from the broker, put down 50% as the initial margin, and
Consider the following short sale example: an investor borrows 100 shares of a stock from the broker, put down 50% as the initial margin, and sells the stock at $50'share in the market. If the maintenance margin is 30%, how much can the stock price rise before the investor gets a margin call? A. 56.79 B. 57.69 C. 59.69 D. 58.79 Regarding the previous question, suppose the stock price later goes up from $50'share to $75/share, put a _may limit the potential loss for the investor? A. limit sell order at $60/share B. limit buy order at $60/share C. stop loss order at $60/share D. stop buy order at $60/share
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