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A customer opens a short margin account by selling short 600 shares of XYZ stock at $80 per share and deposits the required margin. If the stock declines in value by 25%, the customer's equity in the account
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A customer opens a short margin account by selling short 600 shares of XYZ stock at $80 per share and deposits the required margin. If the stock declines in value by 25%, the customer's equity in the account will:

User Tran Anh Hien
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1 Answer

7 votes

Answer:

It will increase by 50%

Step-by-step explanation:

Equity is given as: credit - short market value.

Find attached below table of solution

A customer opens a short margin account by selling short 600 shares of XYZ stock at-example-1
User Maafk
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