You believe the price of Freeze Frame Co. stock is going to fall, so you short 800 shares at a price of $60. The initial margin is 55 percent. Ignore dividends.

a. Construct the equity balance sheet for the original trade. (Input all amounts as positive values.)

Proceeds from sale

Short position

Initial margin deposit

Account equity

Total$76,8 00Total$76,800

b-1. Construct an equity balance sheet for a stock price of $55 per share. (Input all amounts as positive values.)

b-2. What is your margin? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b-3. What is your effective annual return if you cover your short position at this price in six months? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c-1. Construct an equity balance sheet for a stock price of $65 per share. (Input all amounts as positive values.)

c-2. What is your margin? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c-3. What is your effective annual return if you cover your short position at this price in six months? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)