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5 a.) You sell short 100 shares of stock at a price of $80 per share with an initial margin of 50 percent and maintenance

5 a.) You sell short 100 shares of stock at a price of $80 per share with an initial margin of 50 percent and maintenance margin of 25 percent. Show this in a T balance sheet format, and calculate your margin.

Price = 80

Credit for short sale

Cash Deposit =

Liability: Market Value of short sale

Equity =

Total Assets =

Liabilities + Equity=

5 b.) If the price falls to $70 per share, show this in a T balance sheet format, and calculate your margin. Note that you had sold this stock short at $80

Price = 70

Credit for short sale =

Cash Deposit =

Liability:

Equity =

Total Assets

Liabilities + Equity =

5. c. (5 pts) Margin =

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