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You decide to sell short 100 shares of AUTOW stocks at the current market price of $40 per share. The initial margin is 50% and

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You decide to sell short 100 shares of AUTOW stocks at the current market price of $40 per share. The initial margin is 50% and the maintenance margin is 30%. 1) How much is your initial margin (equity)? (2 points) 2) If the price goes up to $42 and the stock paid a dividend of $.5 per share, how much is your return? (3 points) 3) What is the maximum price before a margin call? (assuming no dividend is paid) (3 points) HTML Editore B I J A. = = = = = = = - SC 2 VDT 12pt Paragraph

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