You believe the price of Freeze Frame Co. stock is going to fall, so you short 600 shares at a price of $59. The initial margin is 30 percent. Ignore dividends.

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

b-1. Construct equity balance sheets 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 equity balance sheets for a stock price of $64 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.)

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