Suppose you short$-$sell $1000$ shares of AOT stock at $$30$ per share.

Assume further the initial margin requirement was $50\%.$

a$)$ What is the maximum amount you can lose?

b$)$ By the end of the year the stock pays dividends of $$1$ per share

and the price of the stock surges to $$35.$ The maintenance margin

requirement is $30\%.$ Will you receive a margin call from the

broker?

c$)$ Find the rate of return on this investment.