Jonathan opened an account to short-sell 1000 shares of


Jonathan opened an account to short-sell 1,000 shares of Twitter at $40 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Twitter has risen from $40 to $50, and the stock has paid a dividend of $3 per share.

Part 1: What is the remaining margin in the account?

Part 2: If the maintenance margin requirement is 30%, will Jonathan receive a margin call?

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Financial Management: Jonathan opened an account to short-sell 1000 shares of
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