Data below is applicable to questions 1 & 2. You have been approached by a trader that requires assistance on margin-buying and short-selling on Globe Trade Centre S.A.. He has provided you with the current Bid and Ask price of Globe Trade Centre S.A. as well as a forecast of the price in 1 month time (see table below). Assume a portfolio value/short position of R10 000.00:

	Bid	Ask
Today	R92,51	R97.14
1 Month	R96,21	R101,03

Question 1 Calculate the return assuming that shares are purchased on margin, where the margin amount is 80%, loan 20% and maintenance margin is 40%. A) -26.2% B) -31.83% C) -19.65% D) -22.4% E) -29.08%

Question 2 Calculate the return assuming that shares are short-sold assuming an initial required margin of 40% and a maintenance margin of 25%. A) -23.02% B) -22.79% C) -27.62% D) -23.83% E) -20.72%