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Question
Jennifer believes that Northern Wine stock is going to decline in value so she is short selling 1,000 shares at $32 a share. Her initial margin requirement is 70 percent and the maintenance margin is 30 percent. What is the highest the stock price can go before she receives a margin call?A. $38.97
B. $40.15
C. $41.85
D. $43.75
E. $45.77
Answer
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