Question: Initial Margin = 50%; Maintenance Margin = 30%. Assume you use full amount of margin and short sell 100 shares of stock trading at $100

Initial Margin = 50%; Maintenance Margin = 30%. Assume you use

Initial Margin = 50%; Maintenance Margin = 30%. Assume you use full amount of margin and short sell 100 shares of stock trading at $100 per share. Assume no dividends and no borrowing costs. 1. What will be the return on your position if it drops to $90 per share the next day? 2. How much money (short sale proceeds included) is deposited with your broker at the end of day 1? 3. Given the short position in (1), at what price will you receive a margin call?|

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