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Nadia believes that shares of JKL Corporation are overvalued. She instructs her broker to sell 500 shares of JKL short at the market price of
Nadia believes that shares of JKL Corporation are overvalued. She instructs her broker to sell 500 shares of JKL short at the market price of $20 per share. Following the short sale transaction, JKL declares a cash dividend of $1.50 per share two months later. If the broker has a 70% margin requirement, how much money must Nadia furnish the broker as collateral?
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