Broker initial margin requirement

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Reference no: EM132121035

You are berish on telecom and decide to shell short 100 shares at the current market price of $31 per share.

a. How much in cash or securities must you put into your brokerage if the broker initial margin requirement is 50% of the short position?

b. How high can the price of the stock go before you get a margin call if maintenance is 30% of the value short position?

Reference no: EM132121035

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