Suppose you sell short 500 shares of Disney, currently selling for $100 per share and give your broker $50,000 to establish your account which satisfies your broker and the SEC's initial margin requirements.

A) Lay out your initial brokerage account i.e. showing the short sale. What is the total asset value in your account?

B) What will be your rate of return after one year if Disney's stock is selling for $110 and for $90 per share? Assume a $2 per share dividend was paid.

C) If the maintenance margin is 25% and assume the $2 dividend per share will be paid. How high can Disney's price rise from $100 before you get a margin call?