TWO PART QUESTION

You buy stock on margin in your brokerage account when it is trading at $42.76 per share. You have $4050 in equity (cash) in your account and buy 195 shares. Your broker makes a margin loan so you can pay the difference at an annual rate of 0.0825 One year later the stock price is 44.9 What is the margin percentage in the account one year after the trade is made? O 0.4933 O 0.4698 O 0.4447 O 0.4247 O 0.4014 You believe a stock is poised for a decline and wish to short it. You sell short 690 shares at a price of 39.87 while having cash equity in your account of 10000 The stock you short decreases to a price of 33.09 What is the margin in your account now after the decline in price as a percent? O 0.6763 0.6988 0.5773 O 0.6429 O 0.6069