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  3. 2b the current market price for abc is 72 per...

Question: 2b the current market price for abc is 72 per...

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2.B. The current market price for ABC is $72 per share. Initial margin is 50%, maintenance margin is 35% and there is no margin interest. ABC pays annual cash dividends of $3.75 per share.

2.B.1) You believe the stock price will decrease over the next year and wish to trade exactly one round lot. What trade should you make ? How much margin would you have to post to your account ? At what price would you receive a margin call ?

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