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investment You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share. The initial margin
investment
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share. The initial margin requirement is 50%. The maintenance margin is 30%. (13pts) a. What is the minimum amount of cash or securities must you put into your brokerage account? 2. Show your balance sheet. (5pts) b. If the Telecom stock price rises to $52, what would be your balance sheet? Will you receive a margin call? (5pts) How high can the price of stock go before you get a margin call? (3pts) cStep by Step Solution
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