9. Short Sale: A stock is currently trading at $15. It is also one of the most heavily shorted stocks, with current short interest [shares sold short] at 40% of shares outstanding. a] Consider an investor who is bearish on this stock and who sells 10,000 shares short. Short positions have an initial margin requirement of 50%, with margin invested in t-bills. In terms of the investor's balance sheet for this trade, what is the initial position? Balance sheet for this - osition immediate] after shortin the stock at $15 share: " LIABIerIEs and OWNER's EQUIW Cash (Short-Sale Proceeds) -Short Positiontvalue of shares owed) - b} If the stocks price increases to $18 per share, what will the investor's balance sheet look like? Balance sheet for this rosition if stock rice increases to $18 share: ASSETS LIABILITIES and OWNER'S EQUITY Cash (Short-Sale Proceeds) - Short Positiontvalue of shares owed) - Treasury Bills Equuty c] If the maintenance margin is 30%, will the investor receive a margin call? If there is a margin call how much will be the amount that is mlled for? Explain. (Hint: You can do this two ways: 1] compare the required assets with the actual assets and see if it is above or below and how much. Required assets: [1+ margin%] * Actual Assets or 2] Compare the Equity and Short position and see if it is above or below 30%, if below then calculate how much is needed to bring it back up to 30%. Two approaches should lead to same exact answers. Do both for extra credit.)