Assume that you just shorted 500 shares of Berg-en-dal stock at $90 per share. The initial margin requirement (IMR) is 50 percent and the maintenance margin requirement (MMR) is 30 percent.

What is the margin deposit required for this transaction?

What will be your rate of return if the stock price goes to $77 per share over the next year and you close your position at the end of that time?

How high can the price go before a margin call occurs?