uppose that you sell short 500 shares of XTel, currently selling for $40 per share, and give your broker $15,000 to establish your margin account. Assume it pays no dividends. (4 points)

1. If you earn no interest on the funds in your margin account, what will be your rate of return after one year if XTel stock is selling at:
2. $44
3. $40
4. $36
5. If the maintenance margin is 25%, how high can XTels price rise before you get a margin call?