1. Your short 100 shares of T at $30 per share where your broker has an initial margin requirement of 55%. What price will generate a margin call if the maintenance margin is 25%?
(A) $10.80 (B) $13.20 (C) $34.80 (D) $37.20 (E) $49.60
2. You wish to open a brokerage margin account to employ a Betting Against Beta (BAB) Strategy. You plan to purchase $1000 of stock, A, with a Beta of 0.8 and short $500 in a stock, B, with a Beta of 1.2. What is the minimum amount in $ that you need to fund the new account prior to settlement of the two trades in three business days if you only employ margin on the short position and the initial margin is 50%?
(A) $750 (B) $1000 (C) $1250 (D) $1500 (E) $1750