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Q3. You went for a short sale of 2,000 shares. The price was $50 per share when you initiate the contract This initial margin rate

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Q3. You went for a short sale of 2,000 shares. The price was $50 per share when you initiate the contract This initial margin rate is 50% and the maintenance margin requirement of 30%. Suppose that the stock price changes is as in table 1 (price increase) and table 2 (price decrease) belovw a. What is the Initial Margin and the Price Margin call for both cases? b. Fill in the two tables. Table 1: Price increase time of sale Share Short Sale Initial Margin Total Maintenance Stock Sale Price S55 S75 Table 2: Price decrease time of sale Share Short Sale Initial Margin Price Total Maintenance Margin Requirement Stock Share Short Sale Additional Margin Price S40

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