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You observe the current stock prices of three listed companies (Telecom, New Energy, and Foodie) in the table below: New Energy Telecom $60 Foodie $300
You observe the current stock prices of three listed companies (Telecom, New Energy, and Foodie) in the table below: New Energy Telecom $60 Foodie $300 Share Price $36 a. An investor sold short 100 shares of Telecom based on its current price. The initial margin is 50% and the maintenance margin is 30%. Explain at what price would the investor receive a margin call from the broker? (Rounded to two decimal places) (3 marks) b. You would like to create a price-weighted index consists of the three stocks by setting the divisor to 3. Determine the current index value. (2 marks) c. Suppose that Foodie made a 6-for-1 stock split right after market close. That is, each old share (that was worth $300) become 6 new shares with the ex price of $50 per share. Based on the index value in part b), what is the new value of the divisor
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