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You believe the stock in Freeze Frame Co. is going to fall, so you short 900 shares at a price of $64. The initial margin
You believe the stock in Freeze Frame Co. is going to fall, so you short 900 shares at a price of $64. The initial margin is 70 percent. 1. Construct the equity balance sheet for the original trade. (Input all amounts as positive values. Omit the "$" sign in your response.) Assets Liabilities and account equity $ Proceeds from sale Initial margin deposit $ Short position Account equity Total ta Total ta 2- Construct an equity balance sheet for a stock price of $55 per share. (Input all a. amounts as positive values. Omit the "$" sign in your response.) Assets Liabilities and account equity Proceeds from sale Initial margin deposit $ Short position Account equity $ Total $ Total $ 2-What is your margin? (Round your answer to 2 decimal places. Omit the "%" sign in b. your response.) 2- What is your effective annual return if you cover your short position at this price in 3 c. months? (Round your answer to 2 decimal places. Omit the "%" sign in your response.) Effective annual return de 3- Construct an equity balance sheet for a stock price of $69 per share.(Input all a. amounts as positive values. Omit the "$" sign in your response.) Assets Liabilities and account equity Proceeds from sale Initial margin deposit $ Short position Account equity $ Total $ Total 3- What is your margin? (Round your answer to 2 decimal places. Omit the "%" sign in b. your response.) Margin % 3- What is your effective annual return if you cover your short position at this price in 3 c. months? (Negative amounts should be indicated by a minus sign. Round your answer to 2 decimal places. Omit the "%" sign in your response.) Effective annual return %
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