Practical part: As an investor in the financial market, you have two situations that you can make a profit out of. Currently, the stock price is $35 per share. Identify the best strategy to follow for each case. Draw the balance sheet for both cases before and after you take a position. (Assume 100 shares for each case) The maintenance margin is 20%.

First: When you expect that the price of BETA will decrease in 30 days to $25. The brokers initial margin requirement is 60% of the value of the position.

- What will be your strategy and your position?

- How much will you lose or gain if you closed your position after 30 days?

- Do you receive a call if the price will be $10 per share?

- What should be the price of the stock for you to receive a margin call?

Second: When you expect that the price of BETA will increase in 30 days to $40. The brokers initial margin requirement is 60% of the value of the position.

- What will be your strategy and your position?

- How much will you lose or gain if you closed your position after 30 days?

- Do you receive a call if the price will be $10 per share?

- What should be the price of the stock for you to receive a margin call