M$7$ Problem$-11$

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roblem $3-11$ Margin for Short Position

stock sells for $$60\mathrm{.}00$ per share. You sell short $200$ shares using a $50\%$ margin. A year later, the price has fallen to $$53\mathrm{.}00.$ This

nformation is displayed in the following table:

$($a$)$ What is the initial equity you must have to initiate the trade?

You must have an initial equity of $

to initiate the trade.

$($b$)$ What is your percent equity position at the end of the year?

At the end of the year your percent equity position is

$\%.$ Round your answer to $2$ decimal places.