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5. Define short sales and calculate the profit for a short position. 6. Define and calculate margin in a short position. 7. Calculate margin in

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5. Define short sales and calculate the profit for a short position. 6. Define and calculate margin in a short position. 7. Calculate margin in a short position when stock price changes. 8. Calculate the stock price at which you will get a margin call in a short position. 9. Calculate the rate of return for a short position. 10 . Explain the leverage effect in a long-short investing. 11. Discuss the sources of returns in a long-short strategy and calculate the return for a long-short strategy. 12. Calculate the net beta of a portfolio. 13. Construct a portfolio that is beta neutral or dpllar neutral. 14. Describe the principle of a pairs trading and the procedure to implement the strategy. 15. Explain the statistical arbitrage strategies that trade on momentum, reversal, and value/growth effect. 16. Compute the value of a convertible bond. 17. Discuss the risks involved in a long position of a convertible bond. 18. Explain how to hedge the risks in a long position of a convertible bond

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