Determine the initial margin-maintenance margin

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A trader at the Kewar Stock Exchange took a short position in 100 shares of the Mitha kora at Tk.46.00 per share. The initial margin requirement was 40 percent while the maintenance margin is 30 percent of current market price.

Determine the initial margin, maintenance margin, and the amount of replenishment if the price of Pyera stock changes to (a) Tk.38.00, (b) Tk.48.00, and © Tk.52.00.

Reference no: EM132952794

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