Mike short sold 400 shares of DeSoto Lumber stock at $22 a share at an initial margin of 70 percent.The maintenance margin is 35 percent.What is the highest the stock price can go before he receives a margin call?

Name: Mike short sold 400 shares of DeSoto Lumber stock at $22 a share at an initial margin of 70 percent.The maintenance margin is 35 percent.What is the highest the stock price can go before he receives a margin call?
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Question

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P* = {[(400 × $22) + (400 × $22 × 0.70)] / 400} / (1 + 0.35) = $27.70

Mike Short Sold 400 Shares of DeSoto Lumber Stock at $22