The margin requirements are : Initial 50/Maintenance 40.

ABC shares trade at $70. You short sell 300 shares for $70 per share in your margin account .

The total value of shares is $ #13

The margin is #14

The total in the acct is #15

A. Stock goes up to $80 i.e. 14.3%.

The total value of shares is #16

You buy the shares back, return them to the broker, and you have $ #17 left.

Your percentage profit is: (Final amt Posted Margin) / Posted Margin = #18 %

B. Ignore A. Stock goes down to $60 i.e. 14.3%.

The total value of shares is $ #19

You buy the shares back, return them to the broker and you have $ #20 left.

Your percentage profit is: (Final amt Posted Margin) / Posted Margin = #21 %

C. At what stock price (up) will you get the margin call (i.e. to post more money in the account)?

0.40 = ( ..... ..... ) / 300P Solve for P = $ #22