On January 1, you tell your broker to sell short 500 shares of Apple Inc. stock at a price of $200 per share. You use $70,000cash to serve as a margin.

(a)How high can the stock price go before you get a margin call if the maintenance margin is 50%?

(b)Assume that on April 1, a dividend of $5 per share was paid. On May 1, you covered the short sale by buying the stock at a price of $150 per share and returned your borrowed shares.

I.What is the value of your account on May 1 after returning borrowed shares?

II.What is your rate of return(%)from this short sale??