Assume that half of all used cars are of good quality and worth $8,000, while half of all used cars are of poor quality and worth $6,000.
if a buyer possessed no information about the quality of the car she was considering, what would she be willing to pay for the average used car that is put up for sale? a) $8,000b) $7,000c) $6,000d) the buyer would choose not to buy because of the lack of information.

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.)