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Dr. Lu orders her broker to short-sell 2000 shares of Krispy Kreme when the stock price is $30 per share. The initial margin requirement is
Dr. Lu orders her broker to short-sell 2000 shares of Krispy Kreme when the stock price is $30 per share. The initial margin requirement is 50%. Maintenance margin is 40%. (Total 10 points) a) Dr. Lu only wants enough in the account to satisfy the initial margin requirement. How much should she put into her account first? (5 points) b) At what price would Dr. Lu receive a margin call? (5 points)
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