LOCY stockbroker offers short selling facility to investors with 60% initial margin and 25% minimum margin. If subjected to a margin call, the investor must deposit some fund to return the position to initial margin.

You do short selling of 10,000 YOYO stocks at the price of $20,000/stock.

Instructions :

a) At what price are you subjected to a margin call?

b) If YOYO stock price rises to $26,000, how much Rp margin do you have to deposit?

c) How much return do you earn if in the next month the stock price is $22,000, and you are required to buy back YOYO stocks?