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You just short sold 400 shares of ABD stock for $12,000. The sale was a short sale with an initial margin requirement of 70%. The

You just short sold 400 shares of ABD stock for $12,000. The sale was a short sale with an initial margin requirement of 70%. The maintenance margin is 40%.

8 months later,Some positive news concerning the company was released and the stock price jumped this morning to $38 per share.

QUESTION #3. Construct the balance sheet for the trade when the stock price is $38 per share:

Assets	Liabilities and Account Equity
Proceeds from sale =	Short position =
Initial margin deposit =	Account Equity =
Total =	Total =

QUESTION #2 What is your HPR (Holding period return)?

QUESTION #3 What is your EAR (Effective annual rate)?

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