Heyam sold short 300 shares of common stock at $56 per share. The initial margin is 60%. The maintenance margin is 35%.

What is the value equity at time period 0?

Answer for part 1

At what stock price would Heyam receive a margin call?

Answer for part 2

Would Heyam peruse a short sell strategy when her expectations about the stock are bearish or bullish?

Please write 1 in the box if your answer is bearish and write 2 if your answer bullish.

Answer for part 3

If Heyam closed her short position when the stock price was 48. What is the rate of return on the short position?

Answer for part 4