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Suppose you sell short Apple.Inc which is currently trading at $100 per share. You put $20,000 as cash into your brokerage account with an initial

Suppose you sell short Apple.Inc which is currently trading at $100 per share. You put $20,000 as cash into your brokerage account with an initial margin of 50%. The maintenance margin is 25%.

a. How many shares of Apple can you sell short? (8 pts)

b. How far can the stock price increase before you get a margin call? (12 pts)

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