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An investor shorts 1,000 shares of XYZ.com, a security eligible for reduced margin, at $48. The price of the stock drops to $45. What margin is required in the account after the drop in price? 1) $3,900 O2) $10,500 3) $24,000 4) $14,400

An investor shorts 1,000 shares of XYZ.com, a security eligible for reduced margin, at $48. The price of the stock drops to $45. What margin is required in the account after the drop in price? 1) $3,900 O2) $10,500 3) $24,000 4) $14,400

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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An investor shorts 1,000 shares of XYZ.com, a security eligible for reduced margin, at $48. The price of the stock drops to $45. What margin is required in the account after the drop in price? 1) $3,900 O2) $10,500 O 3) $24,000 O4) $14,400
Transcribed Image Text:An investor shorts 1,000 shares of XYZ.com, a security eligible for reduced margin, at $48. The price of the stock drops to $45. What margin is required in the account after the drop in price? 1) $3,900 O2) $10,500 O 3) $24,000 O4) $14,400
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