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On the financial market, you decide to short sell 200 shares at the current price of $25 per share. The initial margin is 30% and
On the financial market, you decide to short sell 200 shares at the current price of $25 per share. The initial margin is 30% and the maintenance margin is 20%. 1- Explain the short sale and how it's different from the buying on margin? 2- How much in cash or securities you must put into your brokerage account? 3- If the price will increase after one year to 26 $, the interest rate is 5% and the dividend per share is $ 1, will you receive a margin call? 4- How high can the price of the stock go before you will get a margin call? Does this price confirm your answer about the margin call in the question 3? Justify your
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