For all problems below, assume the initial margin is 45% and the maintenance margin is 35% and restoration margin is 40%. 1) Your purchased 500 shares of ABC stock today at $120/share. You purchased the stock on 45% initial margin. Compute the actual margin (%), and the rate of return on your investment when you close out your position on a future date if the stock price is: a) $95 b) $110 c) $140 d) corresponding to each of the 3 prices shown above, compute the rate of return to purchasing the stock on cash (i.e., employing no margin) 2) You purchased 200 shares of XYZ stock today at $180/share. You purchased the stock on 45% margin. After you purchase the stock, the price drops. At what price will the first margin call be made? 3) You purchased 100 shares of DEF stock today at $40/share. You purchased the stock on 45% margin. After you purchased the stock, the stock price drops to (a) $25, (b) $30. Will a margin call be made at either of the prices? If a margin call is made, how much cash would you need to deposit in each case to restore the margin to a level of 40%? 4) You purchased 500 shares of GLM stock today at $80/share on 45% margin. After you purchased the stock, the stock price drops to $55. Will a margin call be made? If the margin call is made, you plan to restore the margin to a level of 40% by selling some shares. How many shares will you need to sell?