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You think that IBM is going to decrease in value this year so you decide to sell short 100 shares at the current price of
You think that IBM is going to decrease in value this year so you decide to sell short 100 shares at the current price of $100 per share. Assume there are no fees associated with the short position as long as you satisfy the margin requirements. Assume at the time of the short sale your account satisfies the 50% initial margin requirement with $5,000 of other funds in the account. At what price would you get a margin call? (Pick the number that is closest to the correct answer.) Assume the broker requires a 33% maintenance margin. O $113 O $112 O $111 O $114
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