$(1)$ You deposited $$90,000$ in a margin account and proceeded to buy $$150,000$ of stock in GOOGL. There is a $30\%$ maintenance margin required by your broker.

The value of each GOOGL share is $$3,000$

Our initial trade has the following characteristics:

Assets Liabilities and Equity The number of shares you own:

Value of Securities Debt

Equity

Hint $1$: The stocks you own determin the value of your assets

Hint $2$: Assets $=$ Liabilities $+$ Equity

$"($a$)$ If the price of GOOGL falls by $50\%,$ how much cash will your broker require you to send if you are to

keep him from selling your positions? $"$

Assets Liabilities and Equity $<-$ Enter balance after the $50\%$ fall!

Value of Securities Debt With $30\%$ margin requirement, our required equity will be:

Equity

The amount of cash your broker will require you to send:

$($b$)$ What happens if GOOGL falls by $30\%?$

Assets Liabilities and Equity Percentage Margin:

Value of Securities Debt

Equity

$<-$ Enter your conclusion on the margin call here

$($c$)$ By what percent does GOOGL have to fall before you will receive a margin call? $($Hint: Margin call will happen at Equity $=0\mathrm{.}3$ x Assets$)$

$<-$ Show work and provide your reasoning here

$<-$ Enter the $\%$ GOOGL should fall before receiving a margin call here!

$($d$)$ If GOOGL falls by $50\%$ and you are unable to deposit additional cash, what is the minimum fraction of your holdings in GOOGL that your broker will liquidate? $($Hint: Equity $>=\mathrm{.}3$ x Assets$)$

How does the new balance look like after the liquidation?

$<-$ The new price of GOOGL

$<-$ Maximum amount of assets that you can hold for your given level of equity considering your $30\%$ margin requirement

$<-$ The minimum number of shares that your broker will have to liquidate

$<-$ The minimum value of assets that your broker will have to liquidate

$<-$ The minimum fraction of assets that your broker will have to liquidate

Assets Liabilities and Equity $<-$ How does the new balance sheet look like?

Value of Securities Debt

Equity