Question: .1. You just opened a margin account with a local brokerage firm. The initial margin is 50% and the maintenance margin is 30%. You

.1. You just opened a margin account with a local brokerage firm.

.1. You just opened a margin account with a local brokerage firm. The initial margin is 50% and the maintenance margin is 30%. You bought 100 shares of TRH at $80per share on the margin. a) What are the initial equity position and loan balance? b) How far can the price go down before you receive a margin call? 2. Suppose that instead of buying AMR shares (The initial margin is 50% and the maintenance margin is 30%), you short sold 100 shares of TRH at $80 per share on the margin. How far can the stock go up before you receive a margin call?

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