1)Petro Asia Inc. opened an account with Fista Broker to short-sell 2,000 shares of Maya Inc at $40. Fista required 50% initial margin. A year later, Mayas share price rises to $50 and the stock has paid a dividend of $1 per share.

1. What is the margin in Petro Asias account at the beginning?
2. If the maintenance margin requirement is 30%, will Petro Asia receive a margin call after one year?
3. What is the rate of return on the investment for Petro Asia Inc. at the end of one year?

(b) What are the following types of orders: stop-loss, limit-sell, and market. (6 marks