You sell short 200 shares of WorthShort Inc. at $25 per share. You post the 50% margin for the transaction, using T-bill. Suppose you earn no interest on the funds in your margin account, and the firm does not pay any dividends.

a. Construct the balance sheet for this transaction.

b. If the stock price increases to $28, what is your total loss in dollar amount? Update your balance sheet.

c. Calculate your margin for part b. If your broker requires a 30% maintenance margin, will you get a margin call?