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You want to short sell 1 0 0 shares of PQR using a 6 0 % margin. The maintenance margin is 3 0 % .

You want to short sell 100 shares of PQR using a 60% margin. The maintenance margin is 30%. The current price of PQR is $40. How much money did you have to invest today? What price will trigger a margin call? What is the overall rate of return on your investment if the stock is selling at a price of $48 in 1 year? What is the overall rate of return on your investment if the stock is selling at a price of $34 in 1 year?
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