Assume you sell short 100 shares of common stock at 70 per


Assume you sell short 100 shares of common stock at $70 per share, with initial margin at 55%. The minimum margin requirement is 30%. The stock will pay no dividends during the period, and you will not remove any money from the account before making the offsetting transaction. At what price would you face a margin call.

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Accounting Basics: Assume you sell short 100 shares of common stock at 70 per
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