Q7 - For short sold 100 shares of DS & Partners at a market price of $45 per share, explain the maximum and minimum possible losses/profits according to price increase and decrease

Q8 - You purchased 100 shares of common stock on margin at $100 per share. Assume the initial margin is 40% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of

a. $90

b. $80

c. $70 ? Ignore interest on margin.