You believe the price of Freeze Frame Company stock is going to fall, so you short $1,000$ shares at a price of $$57.$ The initial

margin is $55$ percent. Ignore dividends.

a$.$ Construct the equity balance sheet for the original trade.

Note: Input all amounts as positive values.

b$-1.$ Construct equity balance sheets for a stock price of $$52$ per share.

Note: Input all amounts as positive values. b$-2.$ What is your margin?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

Margin

$\%$

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

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

Effective annual return$\%$ c$-1.$ Construct equity balance sheets for a stock price of $$62$ per share.

Note: Input all amounts as positive values.

Assets

Liabilities and account equity

Proceeds from sale

Short position

Initial margin deposit

Account equity

Total

$

$0$ Total

$

c$-2.$ What is your margin?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places.

Margin

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

Note: 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.

Effective annual return

$\%$