Suppose you just bought the new Windoze $8$ and that you realize that it is really

bad. As a result you are sure that the price of Microsoft stock $($currently trading for

$$38\mathrm{.}67)$ is going to fall and you tell your broker to short $170$ shares.

Part $1$

If the broker's initial margin is $50\%,$ what is the value of personal assets you must

add to your account to meet the margin requirement?

Part $2$

Assume you have added to your account the value of personal assets determined

in part $1.$ If the broker has a maintenance margin of $30\%,$ what is the highest

value the price of Microsoft stock can reach before you are issued a margin call?

Part $3$

If the price of Microsoft stock falls to $$20,$ what is the profit you make from the

short sale $($in $$)?$