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Suppose you wish to short sell 500 shares of Tesla stock. Current stock price is $300 per share.Your brokerage firm has an initial margin of

Suppose you wish to short sell 500 shares of Tesla stock. Current stock price is $300 per share.Your brokerage firm has an initial margin of 65% and maintenance margin of 40%. Assume this isthe only position in your brokerage account.

A. If Teslas stock price becomes $350, will there be a margin call? Explain or show work.

B. If Teslas stock price becomes $250, will there be a margin call? Explain or show work.

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