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Suppose you sell short 1000 shares of Xtel, currently selling at $50 per share, and give your broker 50% initial margin to establish your margin
Suppose you sell short 1000 shares of Xtel, currently selling at $50 per share, and give your broker 50% initial margin to establish your margin account. If you earn no interest on the funds in your margin account and if the maintenance margin is 25%, how high can Xtels price rise before you get a margin call?
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