Teds Corporation stock is selling for $50 per share. Ted pays no dividends. Initial margin requirements are 50%, and maintenance margin requirements are 30%. You can borrow from your broker at 7% per year on margin debt, but the broker pays nothing on cash balances. Assume for the purposes of these questions (unrealistically, of course) that there are no brokerage commissions. There is nothing else in your account.

a. If you choose to Buy 1,000 shares of TED at $50, What is the smallest check you can write according to regulations as they currently exist?

b. At WHAT PRICE could you expect to get a Margin Call?

c. If instead you choose to SELL SHORT 200 shares of TED at $50, What is the smallest check you can write according to regulations as they currently exist?

d. If you did sell short, At WHAT PRICE could you expect to get a Margin Call?