You are bearish on Apple Stock and decide to short sell the stock. You sell 3000 shares at $20/share. You are required to post an initial margin of 50% and pay in maintenance margin if the margin level drops below 30%.

a. Within hours after you sell short, the stock climbs to $23/share. What is your current margin rate?

b.  How high can the stock rise in price before you get a margin call?

c. The stock rises to $26/share. How much cash will you need to deposit in your account to bring the margin rate up to 30%?