What is the new percentage margin
Course:- Financial Management
Reference No.:- EM13885193

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The price of Apple Stock is currently $95.04 and you decide to sell short 600 shares.

a. the initial margin is 60%. How much do you have to contribute at least to the account?

b. If the price rises to $107.23, what is the new percentage margin?

c. If the broker's maintenance margin is 40%. What is the maximum value the stock price can take before you are issued a margin call?

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