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Assume that you sell short 100 shares of Smart, Inc., at $50 per share at a time when the initial margin requirement is 50% and

Assume that you sell short 100 shares of Smart, Inc., at $50 per share at a time when the initial margin requirement is 50% and the maintenance margin on short sales is 30%. Use what you know about short selling to complete the blanks in the following table:

Item A B C
Price per share 50 30 70
Proceeds from inital short sale 5000 n/a n/a
Initial margin deposit 2500 n/a n/a
Total deposit with broker 7500 7500
Current cost of buying back stock 5000 3000
Account equity 2500 4500 500
Actual margin 0.5 1.5
Maintenance margin position OK OK

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