A trader shorts 500 shares of a stock when the price is K50. The initial margin is 160% and the maintenance margin is 130%. mm 130% a) Describe a margin account using practical examples. [5 Marks] . 7 2 b) What is the difference between using an ISDA master agreement and using a CCP for clearing OTC transactions? [5 Marks] c) How much margin is required from the investor initially? [5 Marks] d) How high does the price of the stock have to rise for there to be a margin call? [5 Marks]has e) Assume further that the trader held the stock for a duration of one year, under which the price increased to K60 and that there was a dividend of K5. Compute the divided yield, capital gain yield and the expected retum on this stock. 60- 60 [5 Marks] Total: 25 Marks]