You believe the price of Freeze Frame Co. stock is going to fall, so you short 450 shares at a price of $75. The initial margin is 50 percent. Ignore the dividends.

a. Construct the equity balance sheet for the original trade

b-1. Construct an equity balance sheet for a stock price of $66 per share

b-2. What is your margin?

b-3. What is your effective annual return if you cover your short position at this price in three months?