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Value of the short position

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You are bearish on Telecom and decide to sell short 100 shares at the current market price of$50 per share.

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

Can you please explain the algebra breakdown step-by-step. Also, can you pleas show how the analysis would change if the maintenance margin increased to 40% instead of 30%.

Reference no: EM133116376

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