Answer: Your maximum profit is $50.
Brokerage companies provide accounts called margin accounts that let customers borrow money to purchase securities.
This is because when you short-sell a stock, you borrow it from your broker and sell it at the current price of $100. Then, you must buy it back later at whatever the price is and return it to the broker. Since you have a 50% margin account, you are only responsible for half of the total amount, which is $50. Therefore, your maximum profit is $50.
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