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John opened an account to short sell 1,000 shares of Fun Inc. The initial margin requirement was 50%. Please note that the margin account pays

John opened an account to short sell 1,000 shares of Fun Inc. The initial margin requirement was 50%. Please note that the margin account pays no interest. A year later, the price of Fun Inc. has risen from $40 to $50, and the stock has paid a dividend of $2 per share within this time.
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