Use the following information to answer the next three questions.

QUESTION 1

You feel Delta Industries' stock will decline, so you short 400 shares at an initial margin of 60 percent on 12/1. Your broker charges you an annual rate of 6% for borrowed funds. Delta trades at $37/share the day you created your short position. If the maintenance margin is 30 percent, at what share price will you receive a margin call?

		45.54
		84.57
		39.85
		74

QUESTION 2

What is your actual margin if the stock trades at $35/share on 12/2?

		.6486
		.4137
		.6914

.2814

QUESTION 3

You closed your margin account four months after opening it. What is your return on invested capital if Delta trades for $42 when you close the account?

		-.2386
		-.5586
		-.6638
		-.6755