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Question 3 [10 marks] When the price of a stock was $25, someone sold 5,000 shares of it short. (a) If the initial margin is

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Question 3 [10 marks] When the price of a stock was $25, someone sold 5,000 shares of it short. (a) If the initial margin is 40%, how much should he deposit in his margin account? (b) If the maintenance margin is 20%, how high can the price go up before there is a margin call

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