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How much must the client put up as margin

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Q1. A client wishes to sell short 500 shares of listed FED Company Ltd. (eligible for reduced margin) at its current market price of $15. How much must the client put up as margin?

Q2. Assume that later on the price of FED's shares declines to $12. Will the client have to put up more margin? How much must be added to, or withdrawn from, the account?

Q3. If the price of FED's shares advanced to $18 instead of declining , would the client receive a margin call? If so, for how much?

Reference no: EM133069553

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