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You decide to sell short 270 shares at a price of $68.53 each. The inital margin is 50%. For this question, assume that the lending
You decide to sell short 270 shares at a price of $68.53 each. The inital margin is 50%. For this question, assume that the lending rate associated with the borrowed shares is 0% and that your cash earns no interest when held by your broker.
If the price rises to $80.74 after 7 months, what is your new margin ratio (expressed as a decimal)? (3 decimals)
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