You decide to sell short 260 shares at a price of $76.43 each. The inital margin is 50%. For this question, assume that the lending rate associated with the borrowed shares is 0% and that your cash earns no interest when held by your broker.

Part 1

How much of your own money do you have to contribute to the account,?

Part 2

If the price rises to $88.64 after 10 months, what is your new margin ratio (expressed as a decimal)?