Suppose you short sell 1000 Intel shares at $20 per share and provide your broker with an initial margin deposit equal to 80% of the short sale value. The maintenance margin is 20% (of the short sale liability). The margin account plus the short sale proceeds earn interest for you at a rate of 0.1% per month (credited to your margin account). Intel will pay a $1 dividend per share in 1 month's time. Assume Intel's share price stays approximately flat for 2 months and then spikes upwards. To the nearest cent, how high can the share price spike to in 2 months' time so that you just avoid a margin call?

	a.	$29.16
	b.	$29.22
	c.	$30.00
	d.	$30.06
	e.	None of the above

2. Buyers. Sellers

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NUMBER VOLUME PRICE $ PRICE $ VOLUME NUMBER 1 4,117 195.300 195.380 3,614 1 2 1,159 195.270 195.450 5,003 1 2 4,079 195.180 195.480 5,143 1 1 5,011 195.150 195.600 5,499 2 1 5,071 195.110 195.660 1,493 1 2 5,616 195.080 195.670 6,353 3 1 1,954 195.020 195.690 150 1 1 5,014 195.010 195.700 518 2 1 462 194.980 195.710 5,071 1 1 511 194.930 195.740 4,995 1 NUMBER VOLUME PRICE $ PRICE $ VOLUME NUMBER 1 4,117 195.300 195.380 3,614 1 2 1,159 195.270 195.450 5,003 1 2 4,079 195.180 195.480 5,143 1 1 5,011 195.150 195.600 5,499 2 1 5,071 195.110 195.660 1,493 1 2 5,616 195.080 195.670 6,353 3 1 1,954 195.020 195.690 150 1 1 5,014 195.010 195.700 518 2 1 462 194.980 195.710 5,071 1 1 511 194.930 195.740 4,995 1