Question: Please make sure to answer A, B and C and D Suppose that you just short sold 100 shares of Quiet Minds stock for $80.00

Please make sure to answer A, B and C and D

Suppose that you just short sold 100 shares of Quiet Minds stock for $80.00 per share. Required: a. If the initial margin requirement is 80%, how much equity must you invest? (Round your answer to the nearest dollar) Equity $ 6,400 b. Construct the balance sheet that corresponds to the transaction described in requirement a Assets Stock Liabilities and Equity 8,000 Short position (100 shares) $ 6,400 Equity $ 14,400 Total liabilities and equity $ $ $ $ T-bills Total assets 8,000 6,400 14.400 c. Now suppose the price of the stock falls to $72 per share. What is your current margin percentage? (Round your answer to 2 decimal places.) Margin percentage % b. Construct the balance sheet that corresponds to the transaction described in requirement a Assets Stock T-bills Total assets $ 5 $ Liabilities and Equity 8,000 Short position (100 shares) S 6,400 Equity $ 14.400 Total liabilities and equity $ 8,000 6,400 14,400 c. Now suppose the price of the stock falls to $72 per share. What is your current margin percentage? (Round your answer to 2 decimal places.) Margin percentage d. The maintenance margin is 30%. At what stock price would you get a margin call? (Round your answer to 2 decimal places.) Stock price

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