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Figure 1 depicts the daily share prices of Rio Tinto Group (RIO) between 01/06/2020 and 18/06/2020. Tom bought 1000 RIO shares on 02/06/2020 and Shelly

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Figure 1 depicts the daily share prices of Rio Tinto Group (RIO) between 01/06/2020 and 18/06/2020. Tom bought 1000 RIO shares on 02/06/2020 and Shelly short sold 1000 RIO shares on the same day. They both used the margin trading facility, in which the initial margin is 50% and the maintenance margin is 30% for both the margin trading and the short selling. Subsequently, Tom closed his position on 10/06/2020 and Shelly closed her position on 18/06/2020. Figure 1: Rio Tinto Group (RIO.AX) Daily Share Price 101.37 99.56 100.48 98.87 -98.86 98.40 98.60 96.97 97.81 97.61 97.42 97.23 96.87 95.00 01/06/20 02/06/20 03/06/20 04/06/20 05/06/20 06/06/20 07/06/20 08/06/20 09/06/20 10/06/20 11/06/20 12/06/20 13/06/20 14/06/20 15/06/20 16/06/20 17/06/20 18/06/20 1) Ignore all the transaction costs, calculate the profit or loss from these two transactions. 2) Assume that Tom and Shelly didn't close their positions as previously stated. a. Will the price rise or fall for Tom to receive his margin call? b. Work out that exact margin call price for Tom. C. Will the price rise or fall for Shelly to receive her margin call? d. Work out that exact margin call price for Shelly

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