Donald opened an account to short-sell 2,700 shares of XYZ at $75 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of XYZ has risen from $75 to $85, and the stock has paid a dividend of $1.50 per share. a. What is the remaining margin in the account? (Round your answer to the nearest whole dollar.)

b. If the maintenance margin requirement is 30%, will Donald receive a margin call?

• No

• Yes

c. What is the rate of return on the investment? (Round your answer to 2 decimal places. Negative value should be indicated by a minus sign.)