You are bearish on Telecom and decide to sell short 260 shares at the current market price of $90 per share.
a. How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position? (Omit the "$" sign in your response.)
Cash or securities to be put into brokerage account $
b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Margin call will be made at price $ or higher