Jennifer believes that Northern Wine stock is going to decline in value so she is short selling 800 shares at $35 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) $42.08
D) $43.75
E) $45.77
Correct Answer:
Verified
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