Two Thousand Shares of Stock Are Shorted at a Price

question 71

Multiple Choice

Two thousand shares of stock are shorted at a price of $26 and an initial margin of 55 percent. If the maintenance margin is 35 percent, what is the critical stock price?

• A) $30.93
• B) $31.67
• C) $30.12
• D) $29.85
• E) $32.26

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