PLEASE PROVIDE STEP BY STEP ANSWERS

question 1)

As of March 9, 2021, the price of GameStop Corp. (ticker: GME) is $246.90 and its closing price on March 10, 2020 is $4.23. You believe GME is overvalued and decide to short-sell GME. You have $112,556 worth of Treasury Bills in your brokerage account that can be used as collateral. Your broker requires an initial margin of 50% and a maintenance margin of 40%. You must also set aside 100% of the cash proceeds as collateral. You decide to short as many shares as you can with the collateral you have. Pay special attention that you cannot purchase/sell/trade fractional shares.

How much cushion (in dollars) do you have before you receive a margin call from your broker? That is, by how much the stock price could move in the "wrong" direction before you receive a margin call? Enter a number with two decimal points.

Question 2)

As of March 9, 2021, the price of GameStop Corp. (ticker: GME) is $246.90 and its closing price on March 10, 2020 is $4.23. Everyone you know believes GME is overvalued and decides to short-sell GME. You on the other hand decide to be a contrarian with a levered position by buying on margin. You have $212,234 of cash that can be used as margin and your broker requires an initial margin of 80% and a maintenance margin of 68%. Pay special attention that you cannot purchase/sell/trade fractional shares.

How much cushion (in dollars) do you have before you receive a margin call from your broker? That is, by how much the stock price could move in the "wrong" direction before you receive a margin call? Enter a number with two decimal points.