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Please show work Suppose that you sell short 500 shares of Intel, which is currently selling...

Please show work

Suppose that you sell short 500 shares of Intel, which is currently selling for $20 per share. Your broker requires 40% initial margin in short sales, which you covered using the T- bills in your account. Assume that the maintenance margin is 20%.

How high can Intel's price rise before you get a margin call?

How much money would you have to put into your account in order to satisfy the maintenance margin requirement if the price suddenly jumped to $31 a share?

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Answer #1

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