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Calculate the margin required for opening short sale

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Reference no: EM133110421

An investor sold short 1000 shares of ABC $30 per share. The stock is eligible for reduced margin.

Required:

A. Calculate the margin required for this opening short sale. Show all calculations for full marks with accurately labeled entries.

B. Assume that the price per share of ABC increases to $40. Calculate the revised margin requirement and the margin deficiency or excess.

Reference no: EM133110421

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