Cardinal Nation, Inc. is currently trading for $50 per share. You think the stock is clearly over-valued; therefore, you decide to short-sell 1,000 shares of stock. The initial margin requirement is 60% while the maintenance margin is 40%.

A) How much cash must you add to your brokerage account to satisfy the initial margin requirement? (Not total cash in the account. How much cash will you have to add out of your own pocket?)

B) Assume the price increases to $60 per share and you receive a margin call. What is the percent margin of your account at this point in time?

C) To meet your margin call, you tell your broker to use cash from your account to cover just enough of your position to get your margin back to the required 60%. How many shares will your broker have to cover? How much cash will be used from your account?

Shares covered (round to a whole number):

Cash used to cover margin call: