What would have been your return

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Reference no: EM131978696

You open a margin account and you buy 1000 shares of the ETF XIV at 150. Your initial margin is 50%. Later, the shares drop to 6. At what point will you have received a margin call from the broker, assuming the maintenance margin is 20%?

Suppose instead that you had shorted the XIV on 50% margin. What would have been your return?

Reference no: EM131978696

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