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You sold short 500 shares of XYZ stock currently priced at $100. Your initial margin requirement was 50%. If interest rate is 0% and the

You sold short 500 shares of XYZ stock currently priced at $100. Your initial margin requirement was 50%. If interest rate is 0% and the stock is selling at $110, would you receive a margin call after one year? Assume that the maintenance margin requirement is 35%. Ignore transactions costs.

Yes, because margin is 30%.

No, because margin is 36%.

Yes, because margin is 36%.

No, because margin is 30%.

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