Question

you are bearish on telecom and decide to sell short 100 shares at the current market...

you are bearish on telecom and decide to sell short 100 shares at the current market price of $50 per share. how high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the short positionn?

In this question , why is maintenance ratio calculated with ((initial margin+stocks posessing)-p*q)/ p*Q?

what I knew was that maintenance ratio is equity/ share so it has to be (p*q- loan)/p*q

I thought it should be equity/ share , but why does this question uses assets in the ratio?

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