1. Suppose that you short sell 500 shares of Strand Corporation stock at $150 per share. The initial margin requirement is 50 percent and the maintenance margin requirement 30 percent.
   1. How much is the short sale deposit that you must maintain in your brokerage account in order to meet the initial margin requirement? (8 pts)
   2. How high can the price of Strand stock go before a margin call is triggered? (8 pts)
   3. Briefly explain why an investor might want to engage in short selling? It is sometimes said that short selling is riskier than holding a long position. Is this true? Explain. (7 pts)