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You are very optimistic about the personal computer industry so you buy 200 shares of Microtech Inc at $45 per share You are very pessimistic about the machine tool industry so you sell short

You are very optimistic about the personal computer industry, so you buy 200 shares of Microtech Inc. at $45 per share. You are very pessimistic about the machine tool industry, so you sell short 300 shares of King Tools Corporation at $55. Each transaction requires a 40 percent margin balance. a) What is the initial equity in your account? b) Assume the price of each stock is as follows for the next three months (month-end). Compute the equity balance in your account for eachmonth:
 

Apr 29 2020 View more View Less

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