4. On August 10, 2022, you learnt that Elon Musk has sold 7.6 million shares of Tesla stock. You believe that it signaled overvaluation in Tesla stock. Therefore, you sold short 200 shares of Tesla stock at a price of $890 per share the next day morning when the market opens. The initial margin requirement is 45% and the maintenance margin is 35%. Short sale proceeds yield 0.5% and the initial margin yields 1.5% (both rates are annual rates). (a) Determine your short sale proceeds and the initial margin requirement (b) What does Tesla's stock price have to climb so that you'll receive a margin call? (c) A week later, on August 17, 2022, Tesla share rose to $920. What was the actual margin in your account? (d) Suppose that you closed your account on August 19,2022 at $855 a share. What was the return on your investment? (Hint: the interest is 9/365 th of the annual interest rate) 4. On August 10, 2022, you learnt that Elon Musk has sold 7.6 million shares of Tesla stock. You believe that it signaled overvaluation in Tesla stock. Therefore, you sold short 200 shares of Tesla stock at a price of $890 per share the next day morning when the market opens. The initial margin requirement is 45% and the maintenance margin is 35%. Short sale proceeds yield 0.5% and the initial margin yields 1.5% (both rates are annual rates). (a) Determine your short sale proceeds and the initial margin requirement (b) What does Tesla's stock price have to climb so that you'll receive a margin call? (c) A week later, on August 17, 2022, Tesla share rose to $920. What was the actual margin in your account? (d) Suppose that you closed your account on August 19,2022 at $855 a share. What was the return on your investment? (Hint: the interest is 9/365 th of the annual interest rate)