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You expect the stock of Tesla, Inc. to go down. So, you short sell 1,000 shares at $400. Show your balance sheet for each part
You expect the stock of Tesla, Inc. to go down. So, you short sell 1,000 shares at $400. Show your balance sheet for each part below: a. If your broker's initial margin requirement is 70%, how much in cash or securities do you need to put down as margin? b.If the stock goes down to $300, what are your % margin and rate of return? c. If the maintenance margin requirement is 25%, above what stock price will you get a margin call
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