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Due to COVID-19, Zeina opened an account to short-sell 500 shares of Eastern Tobacco (EAST). The initial margin requirement is 60%. A year later, the

Due to COVID-19, Zeina opened an account to short-sell 500 shares of Eastern Tobacco (EAST). The initial margin requirement is 60%. A year later, the price of Eastern Tobacco (EAST) has fallen from EGP 18 to EGP16, and the stock has paid a dividend of EGP 0.25 per share. Zeina is paying to her broker commission per share 0.5 EGP.

a.What is the remaining margin (equity) in the Zeinas account after the price decrease of Eastern Tobacco (EAST)?

b.What is the rate of return on the investment?

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