3. On the financial market, you decide to short sell 200 shares at the current price of 25 per share. The initial margin is 30 % and the maintenance margin is 20%. The dividend is equal to 0.5 per share and the interest rate on the loan is 2 %

a) Explain the short sale and how it's different from the buying on margin? (1 Mark )

b) How much in cash or securities you must put into your brokerage account? (1 Mark)

c) If the price increases to 26 will the investor receive a margin call? (1 Mark)

d) How high can the price of the stock go before you get a margin call (2 Marks)