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Question 3 Suppose you want to do a short sale of General Motors stock. You short sell 750 shares at $35 per share. Initial margin:
Question 3
Suppose you want to do a short sale of General Motors stock. You short sell 750 shares at $35 per share. Initial margin: 55%. Maintenance margin 35%
- If the stock price falls to $15, will there be a margin call? Show work or explain.
- If the stock price rises to $70, will there be a margin call? Show work or explain.
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
3rd Edition
0324274319, 9780324274318
