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Last week, Matt shorted 200 shares of Pirate stock at $20 per share at an initial margin of 80 percent in his new account; the
Last week, Matt shorted 200 shares of Pirate stock at $20 per share at an initial margin of 80 percent in his new account; the stock has since increased and closed at $25 per share today. Having calculated the share price that will trigger margin call if the price continues rising, he gets nervous and decides to issue a buy order to return the shares and close out his short position. How much equity will he have left? (OMIT any %-signs or $-signs in your answer i.e., if you get $10.00 or 12.3%, simply enter *10.00" or "12.30 as your answer.)
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