32. Assume initial equity is 60% and minimum equity is 30%. On Tuesday you buy $20,000 worth of stock using your money and a margin loan. On Friday the stock is worth $27,000. On Friday your account is a) restricted b) unrestricted c) in a margin call 33. Short selling requires initial equity 60% and minimum equity 30%. You short sell 1,000 shares of stock at $10 each at 3p.m. on Monday. By Tuesday noon the stock price is S9. Which statement is correct? a) b) c) d) Your account is restricted. Your equity is 10%. Your account is restricted. Your equity is 52.1%. Your account is unrestricted. Your equity is 46.2% Your account is unrestricted. Your equity is 77.8%. 34, Short selling requires initial equity 60% and minimum equity 30%. You short sell 1,000 shares of stock at $10 each at 3p.m. on Monday. By Tuesday noon the stock price is $10.50. Which statement is correct? a) b) c) d) Your account is restricted. Your equity is 10%. Your account is restricted. Your equity is 52.4%. Your account is unrestricted. Your equity is 46.2%. Your account is unrestricted. Your equity is 77.8% 35. Short selling requires initial equity 60% and minimum equity 30%. You short sell 1,000 shares of stock at $20 each at 3p.m. on Monday. By Tuesday noon the stock price is $20.12. How much is your excess equity? a)S1,500 b) $1,600 c)-$720 d)account is restricted so no excess equity 36. Short selling requires initial equity 60% and minimum equity 30%. You short sell 1,000 shares of stock at $10 each at 3p.m. on Monday. By Tuesday noon the stock price is S9. How much is your excess equity? a)S1,500 b) $1,600 c) $1,700 d)account is restricted so no excess equity 37. Short selling requires initial equity 60% and minimum equity 30%. You short sell 100 shares of stock at and have total collateral of $33.60 per share. At what price is your equity exactly equal to the minimum equity of 30%? a) $22.40 b) $25.85 c) $26.88 d) S32.00 38. Short selling requires initial equity 60% and minimum equity 25%. You short sell 100 shares of stock. Your total collateral is $4,000. At what price is your equity exactly equal to the minimum equity of 25%? a) $12.60 b) $13.13 c S25.85 d) $32.00 39. You conduct a short sale when the stock price is $25. Short selling requires initial equity 60% and minimum equity 30%. Yon close-out, "cover" your short sale when the stock price is $20. What rate of return did you earn on your investment? a)-25% b)-20% c) 25% d) 33.3% 40. You conduct a short sale when the stock price is $12. Short selling requires initial equity 60% and minimum equity 30%. You close-out, "cover" your short sale when the stock price is $15. What rate of return did you earn on your investment? a)-20% b) 41.7% c) 25% d) 33%