# Question

To cover the initial margin requirement of 60 percent, you deposited funds after short- selling 100 shares of common stock at $ 45 per share.

a. What is your rate of return if you cover at $ 50, assuming no dividends and no addition or removal of funds from the account?

b. At what price would you receive a margin call if the minimum margin requirement is 30 percent?

a. What is your rate of return if you cover at $ 50, assuming no dividends and no addition or removal of funds from the account?

b. At what price would you receive a margin call if the minimum margin requirement is 30 percent?

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