12A)

You short-sell 100 shares of Tuckerton Trading Co., now selling for $44 per share. What is your maximum possible gain, ignoring transactions cost?

Multiple Choice

• $44

• $56

• unlimited

• $4,400

12B)Youve borrowed $30,222 on margin to buy shares in Ixnay, which is now selling at $43.8 per share. You invest 1,380 shares. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price changes to $54 per share.

a. Will you receive a margin call?

• Yes

• No

• • b. At what price will you receive a margin call?