Suppose that you have $82,500 to invest and would like to purchase 1500 shares of ABC Corp.'s shares which are currently trading for $100.00 per share. Law requires that all brokers have an Initial Margin of 50% but your broker demands a 55% Initial Margin. Also, your broker requires 35% Maintenance Margin at all times. Suppose that, instead of going long (buying) ABC Corp.'s stock, you were actually shorting the stock. If the price went to $125 how much would you have in gained or lost from your original investment of $82,500?
a) +$37,500
b) +/- $0
c) -$13,751
d) -$45,000