You are bearish on Telecom and decide to sell short 100 shares at the current market price of $25 per share.

a. How much in cash or securities must you put into your brokerage account if the broker's initial margin

requirement is 50% of the value of the short position?

b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of

the value of the short position?