Q5. After the analysis, you sell short 500shares of Platform Tech, Co., stock (PLT) at $350 a share.Your broker charges you an interest on the borrowed stock at $0.20 per share per day.You also have an initial margin requirement of 50%, and a minimum maintenance margin of 30%.

Q5.1 What istherequiredtotal dollar amount of your initial margin?

Continue with Q5: Assumingyou put up just enough cash as collateral to satisfy initial margin. After 10 days, the stock price rises to $450.

Q5.2 What is your current margin after 10 days?(Hint:calculate yourequityascash positionplusgain/loss, andremember to include interest paid).