Please answer all questions and show step by step using BA II calculator.

Question 1 - Short Selling 14 points]: Assume that IBM stock is selling for $100 per share and that you short sell 200 shares of the stock What would be your dollar return if the price of IBM stock drops to $95 per share? b. What would be your dollar return if the price of IBM stock increases to $120 per share? Is there a limit to your gains? Is there a limit to your losses? Explain.? Question 2 - Margin Trading 14 points]: Robin wants to purchase 1,000 shares of Anatop, Inc., which is selling for $5 per share. Anatop does not pay dividends because all earnings are reinvested in the firm to maintain its successful R&D department. The brokerage firm will allow Robin to borrow funds with an initial margin requirement of 60 percent and a maintenance margin of 30 percent. The broker loan rate is 10 percent. Assume that Robin borrows the maximum allowed by the brokerage firm to purchase the Anatop stock. 1. How much of her own money must Robin provide to purchase 1,000 shares of Anatop? b. If the price of Anatop's stock is $7.50 in one year, what rate of return would Robin earn from her investment position? c. If the price of Anatop's stock is $4 in one year, what rate of return would Robin earn from her investment position? Question 3 - Holding Period Return (4 points]: Mary Anderson bought 250 shares of Dishport stock when it was selling for $50 per share, and she sold the stock for $58 per share six months later. During the time she held the stock, Mary received two $1 dividend payments from the firm. What was Mary's six-month holding period return? On an annual basis, what return did Mary earn? Question 4 - Rates of Return [4 points]: Nancy Cotton bought 400 shares of NeTalk for $15 per share. One year later, Nancy sold the stock for $20 per share, just after she received a $0.50 cash dividend from the company. What is the total dollar return earned by Nancy for the year? What is the rate of return earned by Nancy? Separate the rate of return computed in part (b) into the dividend yield and the capital gain. In other words, compute the dividend yield and the capital gain that Nancy carned by holding NeTalk for one year