Buying on Margin. For each problem, determine whether there will be a margin call if the price falls $10. For each problem, determine the price limit that triggers a margin call.

1) Price = $60

Shares = 1000

Initial margin (IM) or Down Payment = 50%

Maintenance margin = 35% or .35

2) Price = $70

Shares = 1000

Initial margin (IM) or Down Payment = 60%

Maintenance margin = 40% or .40

3) Price = $90

Shares = 1000

Initial margin (IM) or Down Payment = 65%

Maintenance margin = 45% or .45