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Suppose the maintenance margin is 30%. You used up the maximum allowable margin (maximize your financial leverage) to trade the 1500 shares of APPL stocks and invest your remaining funds on the Treasury-bill with annual interest rate 1% (1%/365 per day). The broker charges you the collateral in the case of short selling or provides you with the loan (with zero interest rate) in the case of buying according to the latest close price of APPL stock ($190 per share). The following table is some observations of daily price records of APPL stock during the period from June 13^th, 2023 to July 13^th, 2023. (Assume in any other dates between June 13^th, 2023 and July 13^th, 2023, you did not receive any margin calls or execute any orders)

DateOPENHIGHLOWCLOSEJune 14^th, 2023June 19^th, 2023June 23^rd, 2023June 27^th, 2023June 30^th, 2023July 4^th, 2023July 12^nd , 2023

1. Would you receive a margin call before your plan to close your position on July 13^th, 2023 and explain why? Please discuss both the trading cases if you are (i) extremely pessimistic; (ii) extremely optimistic?

2. If you received the margin and dont have any additional funds, you had to close your position immediately at the time when you received the margin call (suppose the market is liquid so you can trade at price when you receive the margin call). Alternatively, if you did not receive a margin call, you would close your position on July 13^th, 2023 by a executed limit order of $195 per share. The initial order book structure and the market order you submitted to construct your position is also the same as the description in B2. Calculate the final return of your trading in both cases if you are (i) extremely pessimistic; (ii) extremely optimistic.

$187.42 $195.3 $219.24 $205.5 $189.2 $190.3 $195.29 $198.5 $197.2 $203.03 $212.57 $195.3 $214.87 $171.84 \$198.3 $197.2 $215.5 $186.2 $217.87 $174.9 $175.3 $195.5 \$198.3 $210.2 $170.87 $187.5 $186.9

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