The correct answer is $57.69 or more.
The sum of money borrowed from the broker for stock market trading is referred to as margin. Investors can trade with leverage thanks to margin. The two forms of margin are initial margin and maintenance margin.
Selling stocks that are borrowed from a broker rather than ones that an investor owns is known as a short sale. Later, it is bought to pay off the loan.
Initial margin is $2,500, or 50% of $5,000.
There are $7,500 in total assets ($5,000 from the sale of the shares and $2,500 from margin). Obligations are 100P. Net worth is therefore ($7,500 - 100P).
The answer to the equation "$7,500-100P" /"100P" = 0.30 is P = $57.69.
The stock price will trigger a margin call when it reaches $57.69 or more.
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