Stock ABC has the following closing prices:

Day	1	2	3	4	5	6	7	8	9	10
Price	80	88	100	90	80	65	60	50	45	35

a. Mr. Adams will short 100 shares at the conclusion of the first day and maintain the position for ten days. Assuming the initial margin requirement is 150% and the maintenance margin is 130%, determine how much will be deposited into the margin account at the end of each day. What is the gain or loss for Mr. Adams? Assume the margin account has not received any interest payments.

b. Mr. Williams buys as many shares on margin as he can at the end of the first day. He initiallyhas 400. How many shares will Mr. Williams beable to buy? What daywill Mr. Willaims be expected to post additional margin? What is Itchy's profit or loss now that the trade is closed out since Itchy cannotpostthe margin? Assume that 30% is the maintenance margin and50% is the initial margin requirement.