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Business, 25.02.2020 05:18 haileesprague1578

Assume you sell short 100 shares of common stock at $30 per share, with initial margin at 50%. You repurchase the stock at $25 per share 90 days later The stock paid $2 in dividends during the period, and you did not remove any money from the account before making the offsetting transaction. The broker charged $0.50 per share as commission. Minimum maintenance margin is 30% a. Show the T-Account with initial short position and calculate the margin. b. Show T-Account when the stock price drops to $25. Show margin calculations. c. What is your 90-day rate of return

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Assume you sell short 100 shares of common stock at $30 per share, with initial margin at 50%. You r...
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