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Intro Suppose you just bought the new Windoze 8 and that you realize that it is really bad. As a result you are sure that
Intro Suppose you just bought the new Windoze 8 and that you realize that it is really bad. As a result you are sure that the price of Microsoft stock (currently trading for $27.73) is going to fall and you tell your broker to short 120 shares. Part 1 | Attempt 1/10 for 10 pts. If the broker's initial margin is 50%, what is the value of personal assets you must add to your account to meet the margin requirement? 0+ decimals Submit Part 2 - Attempt 1/10 for 10 pts. Assume you have added to your account the value of personal assets determined in part 1. If the broker has a maintenance margin of 30%, what is the highest value the price of Microsoft stock can reach before you are issued a margin call? 1+ decimals Submit Part 3 Attempt 1/10 for 10 pts. If the price of Microsoft stock falls to $20, what is the profit you make from the short sale (in $)? 0+ decimals Submit
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