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You want to short 1 0 0 J shares at $ 1 2 per share. Your broker has a 5 0 % initial margin and

You want to short

100

J shares at $

12

per share. Your broker has a

50 %

initial margin and a

30 %

maintenance margin on short sales. The stock price falls to $

10

per share. Are you subject to a margin call? Explain.

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