35.)John executes a short sale of 1,000 shares of ABC at $50 that is subsequently covered at $45. What is his gain or loss?

a. Profit of $5,000.

b. Loss of $5,000.

c. Profit of $65,000.

d. Loss of $60,000.

36.) An investor purchased shares with a market price of $50 when the initial margin requirement was 70%. If the price increases to $60, the investor's rate of return, ignoring dividends and interest, is closest to:

a. 20%.

b. 24%.

c. 29%.

d. 30%.