Tom started to feel more comfortable trading stocks and wanted to navigate more trading

strategies. He started to hear about short selling. Tom still does not fully understand how

it works but he knows it is a way to make money when you are bearish about a certain

stock. Tom is not into social media and strongly believes that social media stocks are

significantly overvalued. His advisor tried to convince him not to let his personal

preference determine his investment strategies, but Tom said, $$I tried it once with GRMT

and it worked, I know it will work again!!$.$ So$,$ he decided to invest part of his money

to short$-$sell the new social media company Eye City $($EC$).$ Tom sold $40,000$ shares of EC

short at a price of $$28$ on December $30$th of $2021($The broker has a $50\%$ margin

requirement on short selling$).$ He also decided that The remaining amount of the

money will be invested in the money market $$Municipal bonds$.$ He purchased bonds

issued by the state of Texas that have a yield of $7\%.$

$9)$ How much will be invested in the Municipal bonds?

a$)$ $$800,000$

b$)$ $$1,120,000$

c$)$ $$880,000$

d$)$ $$560,000$

e$)$ $$780,000$