1. On Jan 1, you sold short 400 shares of Microsoft at $30 per share. You post $7200 to the margin account. On April 1, you received a margin call on this trade. Assume the minimum margin requirement is 25% and you receive a margin call. What amount must you top-up to restore to a 60% margin?

		$1880
		$2400
		$3360
		$3840
		None of the above

1. Which of the following orders will be triggered by an increase in price: [I] Stop-buy [II] Stop-sell [III] Limit-buy [IV] Limit-sell

		I and II only
		I and IV only
		II and III only
		II and IV only
		III and IV only

QUESTION 8

1. Which of the following are TRUE statements regarding short selling? [I] Losses are unlimited. [II] The investor may incur a net loss when the price of the underlying security decreases. [III] Short selling is banned on the SGX.

		I only
		II only
		I and II
		III only
		None of the above

1. You short-sell 150 shares of Lake Bled Fishing Co., now selling for $45 per share. To limit your loss to approximately $3,000, you should place a stop-buy order at ____. (Assume the market is liquid.)

		$55.00
		$60.00
		$65.00
		$70.00
		None of the above

1. Which of the following statements are TRUE of a standard Treasury Bill: [I] Negligible risk of default [II] Pays regular coupons [III] Cannot be traded

		I only
		I and II only
		I and III only
		II and III only
		I, II and III