5. Suppose that Intel is currently selling at $20 per share. Suppose that your friend Alex is pessimistic about Intel's stock performance. Then he sells short 1,000 shares of Intel at $20 per share, and gives his broker $15,000 to establish his margin account. Assume that Intel also has paid a year-end dividend of $1 per share. [10 marks] a) If Alex earns no interest on the funds in the margin account, what will be his rate of return after 1 year if Intel stock is selling at: (i) $22; (ii) $20; (iii) $16? [6 marks] b) If the maintenance margin is 25%, how high can Intel's stock price rise before Alex gets a margin call? [4 marks]