Suppose you earn $50 working at the ice cream shop for 5 hours. On your way home, you find $50 next to a garbage can. You are excited for the extra money and decide to spend it on new shoes as soon as you can, whereas you are saving your paychecks to pay off your credit card debt. This scenario of viewing money differently is an example of . Select the correct answer below: mental accounting rational behavior supply of money responding to the demand profit maximization

You are bearish on telecom and decide to sell short 100 shares at the current market price of $50 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? 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? (input the amount as a positive value. round your answer to 2 decimal places.)