39. Suppose initial margin rate is 50% and maintenance margin rate is 30%. You sell short some stock. What is the net return of the stock when you get the SECOND "margin call"? Note the answer for this question is the same regardless of the initial stock price. Express your answer as a decimal after rounding it to the nearest basis point. For example, type 0.2515 if your answer is 25.1533%. (Hint: We don't need new formulas for the second margin call. When you provide the extra collateral at the first margin call, everything is reset. So, it is like you are having a new short sale position at the first margin call. You know the stock price at the first margin call and you already met the initial margin condition. Therefore, the "real" second margin call in this question is nothing but another first margin call after the "real" first margin call. So, you can use the same formula in thelecture note to find the return at the "real" second margin call by compounding two returns for the period before the first margin call and the period between the first and the second margin call.) 40. Suppose the initial margin mo-50% and the maintenance margin ml-30%. The current stock price is $68 per share, and you sell short 3000 shares of the stock now. If you want to keep your short position after the third margin call, how much cash do you need in advance at least? Simply compute the sum of the initial margin amount, 1st extra margin, 2nd extra margin, and 3d extra margin all together without time discount. Type your answer without S and round it to the nearest dollar. For example, if your answer is $345,284.23, then type 345284. (Hint: We don't need new formulas for the second and the third margin call. When you provide the extra collateral at the first margin call, everything is reset. So, it is like you are having a new short sale position at the first margin call. You know the stock price at the first margin call and you already met the initial margin condition. Therefore, the "real" second margin call in this question is nothing but another first margin call after the "real" first margin call. So, you can use the same formula in the lecture note to find the stock price at the "real" second margin call and how much you have to provide as extra collateral. You can do the same thing for the third margin call. )