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You short-sold 100 shares of a stock for $22 per share and bought them back later for $26 a share. The initial margin was 70%
You short-sold 100 shares of a stock for $22 per share and bought them back later for $26 a share. The initial margin was 70% and the maintenance margin was 35%. The stock does not pay any dividends. Ignore interest and trading costs. How much cash must you put down to short the stock? What is your dollar gain/ loss on the trade? What is your return on investment as a percentage?
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