You decide to sell short 100 shares of Swethen Gold Stationary Co. when it is selling at the yearly high of $60.00. Your broker Samantha Chow advises you that your margin requirement is 45% and the commission on the purchase is $155.00. While you are short the stock Swethen Gold Stationary Co. pays $3.50 per share dividend. At the end of year one, you buy 100 shares of Swethen Gold Stationary at $45 to close out your position and are charged a commission of $145 and 8 percent commission on the money borrowed. (a) What is your rate of return on the investment - show calculations? 3 marks (b) You have decided that the fees charged by Samantha Chow are too high and so you transfer $50,000 to another broker with a lower margin fee. The new margin requirement is a little lower at 40% with no commissions, and a stock, Windsor Apple Cider is selling at $38.00 per share. a. How many shares can you purchase using the maximum allowable margin? b. What is your profit (loss) if the Windsor Apple Cider stock price i. Rises to $55.00 ii. Falls to $35.00 2+6= 8 marks (c) You are not convinced that you are suited to margin trading, so you change your strategy. The stock of Gourmet Foods Company is selling for $48.00 a share. You place a limit order at $44.00 for one month. During the month, the stock price declines to $40.00, then jumps to $46.00. a. Excluding commission, what would have been your rate of return on this investment? b. What would be your rate of return if you had placed a market order? 2+2= 4 marks