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You believe the stock in Freeze Frame Co. is going to fall, so you short 600 shares at a price of $72 per share. The
You believe the stock in Freeze Frame Co. is going to fall, so you short 600 shares at a price of $72 per share. The initial margin is 50%. Construct the balance sheet for the original trade. Now construct balance sheets for a stock price of $63 and a stock price of $77, respectively. In addition, at what stock price are you going to receive a margin call from the broker if the maintenance margin is 25%?
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