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You purchased 700 shares of stock at a price of $73 per share on 50% margin. If the maintenance margin is 40%, what is the
You purchased 700 shares of stock at a price of $73 per share on 50% margin. If the maintenance margin is 40%, what is the critical stock price? Show all work.
Suppose that in the previous problem you shorted 700 shares instead of buying. The initial margin is 50 percent. If the maintenance margin is 40%, what is the critical stock price? Show all work.
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