You believe the price of Freeze Frame Co. stock is going to fall, so you short 950 shares at a price of $74. The initial margin is 50 percent. Ignore dividends.

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

assets		Liabilities and account equity
Proceeds from sale		Short position
Initial margin deposit		Account equity
Total	$35,150	Total	$70,300

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

Assets		Liabilities and account equity
Proceeds from sale		Short position
Initial margin deposit		Account equity
Total	$0	Total	$0

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 $79 per share. (Input all amounts as positive values.)

Assets Liabilityes and account equity

Proceeds from sale		Short position
Initial margin deposit		Account equity
Total	$0	Total	$0

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.)