Question

You are bearish on BCE stock and decide to sell short 5,000 shares at the current...

You are bearish on BCE stock and decide to sell short 5,000 shares at the current market price of $100 per share. The initial margin requirement is 55%. Assume the minimum margin is 30%. At what price would you receive a margin call?

a) 64.29

b) 136.59

c) 119.23

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