You sold short 400 shares of ABC stock at $75 a share. The initial margin is 50 percent and the maintenance margin is 30 percent. The stock is currently selling for $65 a share. Ignore margin interest and transaction costs.
(e) What is the current % margin position?
(f) If you cover the short position today, what is your return with the short sales?
(g) What is the critical price for a margin call?