On August 24, 2011, Steve Jobs, a visionary CEO of Apple, Inc. announced his resignation. You believe that Apples remarkable comeback after 1997 is due to Steves leadership. Therefore, you sold short 1,000 shares of Apple stock at a price of $360 per share the next day morning when the market opens. The initial margin requirement is 45% and the maintenance margin is 30%. Short sale proceeds yield 1.5% and the initial margin yields 2.5% (both rates are annual rates).

1. Determine your short sale proceeds and theinitial margin requirement
2. What does Apples stock price have to climbso that youll receive a margin call?
3. A week later, on August 31, 2011, Apple share rose to $386. What was the actual margin in your account?
4. Suppose that you closed your account on August 31, 2011. What was the return on your investment? (Hint: the interest is 1/52th of the annual interest rate)