dsa$(8$pt$)4.$ JD Trader opens a brokerage account and

purchases $400$ shares of

FINCEDU at $$26$ per share. He borrows $$3,200$ from his broker to help pay for the

purchase. The interest rate on the loan is $10\%.$

a$.$ What is the margin $(\%)$ in JD$\text{'}$s account when he first purchases the stock?

b$.$ If the share price falls to $$15$ per share by the end of the year, what is the

remaining margin $(\%)$ in his account? If the maintenance margin requirement is

$45\%,$ will he receive a margin call? $($Show your calculation$)$

c$.$ If JD decides to sell $100$ shares to pay down the debt, what is the new margin

$(\%)?$

d$.$ What is the rate of return on his investment?