Question: please answer question one and question two and show all work Question 1 (20 points) Suppose you wish to sell short 150 shares of Boeing

please answer question one and question two and show all work please answer question one and question two and show all work Question

Question 1 (20 points) Suppose you wish to sell short 150 shares of Boeing Co (NYSE BA). The current selling price per share is $30. The initial margin requirement for the short sell is 40%. The broker requires a 35% maintenance margin, please calculate the stock price that will trigger a margin call. Question 2 (20 points) The stock of Boeing Co (NYSE BA) sells for $30 a share. The following tables presents the cash dividend payout and year-end price for each state of the economy: Dividend Stock Price $2.00 Normal economy 100 0.50 A. Calculate the expected return and its standard deviation. Assume the three scenarios are equally happened. B. Calculate the expected return and standard deviation of a portfolio invested half in Boeing Co and half in T-bills. Assume the return on bills is 3%

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