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You are a financial analyst at a brokerage firm, and one of your clients, Sandra, a seasoned investor, is interested in short selling shares of

You are a financial analyst at a brokerage firm, and one of your clients, Sandra, a seasoned investor, is interested in short selling shares of TechGen Inc. The current market price of TechGen stock is $80 per share. Your client wants to short sell 300 shares of TechGen Inc. Your brokerage firm has an initial margin requirement of 60% and a maintenance margin requirement of 30%.
a. Calculate the amount of cash or securities Sandra must put into her brokerage account to meet the initial margin requirement. (1 mark)
b. Determine how high the price of TechGen stock can rise before your client receives a margin call, given the maintenance margin requirement. (2 marks)
. How is margin trading different from short selling? (2 marks)

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