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Suppose an investor is pessimistic about the Caterpillar (NYSE CAT) stock. She prepares to sell short 100 shares of common stocks. The current selling price
Suppose an investor is pessimistic about the Caterpillar (NYSE CAT) stock. She prepares to sell short 100 shares of common stocks. The current selling price of the stock is $150. The requirement for initial margin is 50% and the account requires a 40% maintenance margin. What will be the stock price that triggers a margin call?
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