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6.) (10 points) You sold short 500 shares of a stock for $90 per share. Your broker's initial margin requirement is 60%. The broker's maintenance
6.) (10 points) You sold short 500 shares of a stock for $90 per share. Your broker's initial margin requirement is 60%. The broker's maintenance margin requirement is 30%. You initially want to put up as little capital as possible to support the short sale. A.) If the stock price goes against you, rising to $115 per share, will you receive a margin call? Show your work to support your answer. B.) If the stock price moves in your favor, what rate of return will you receive on your investment if the company's stock was priced at $65 per share when you covered your short position? The stock you shorted paid total dividends of $1.30 per share during the time you held the stock short. Assume there are no broker transaction charges or borrowing costs
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