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1. You are bearish on GPL and decide to sell short 1,000 shares at the current market price of $84 per share. GPL pays no

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1. You are bearish on GPL and decide to sell short 1,000 shares at the current market price of $84 per share. GPL pays no dividends. a. How much in cash or securities must you put into your brokerage account if the initial margin requirement is 70%? b. If you earn no interest on the funds in your margin account, what will be your rate of return after a week if GPL is selling at $70 per share? c. How high can the price of the stock go before you get a margin call if the maintenance margin is 30%? (10 marks)

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