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9) Selling ShortAn investor borrows 5,000 shares from their broker to sell short. The price of the stock is $15. Thebroker requires an initial margin
9) Selling ShortAn investor borrows 5,000 shares from their broker to sell short. The price of the stock is $15. Thebroker requires an initial margin of 0.60 on short sales. The broker does not charge a short fee.a) How much does the investor have to deposit in their broker account to satisfy the short salesinitial margin requirement?b) If the maintenance margin is 0.30, what price will result in a margin call?c) The stock price falls to $10, what is the profit/loss in dollars?d) If the price increases to $25, what is the profit/loss in dollars
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