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Problem 3 - 1 9 ( Algo ) You are bearish on Telecom and decide to sell short 1 0 0 shares at the current
Problem Algo
You are bearish on Telecom and decide to sell short shares at the current market price of $ per share.
Required:
a How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is of the value of the short position?
b How high can the price of the stock go before you get a margin call if the maintenance margin is of the value of the short position? Round your answer to decimal places.
Stock price reaches
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