Question 2: Short Selling

Assume that you sell short 100 shares of Smart, Inc., at $50 per share at a time when the initial margin requirement is 50% and the maintenance margin on short sales is 30%. Use what you know about short selling to complete the blanks in the following table:

Item	A	B	C
Price per share	50	30	70
Proceeds from initial short sale	5000	n/a	n/a
Initial margin deposit	2500	n/a	n/a
Total deposit with broker		7500	7500
Current cost of buying back stock	5000	3000
Account equity	2500	4500	500
Actual margin	0.5	1.5
Maintenance margin position	OK	OK