Question: Hello, I need help on that Thanks a. Mandy purchases 4,000 shares of EHM stock on margin at $80 per share. The initial margin requirement

 Hello, I need help on that Thanks a. Mandy purchases 4,000

Hello,

I need help on that

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a. Mandy purchases 4,000 shares of EHM stock on margin at $80 per share. The initial margin requirement on a stock purchase is 60%. The interest rate is 2% per week. i. How much is the margin in Mandy's account when she first purchases EHM stock? (2 marks) ii. What is the remaining margin in the account if EHM share price falls to $65 per share after a week? Will she receive a margin call if the maintenance margin requirement is 30%? (6 marks) iii. Determine the rate of return on her investment. (3 marks) b. Stella decides to sell short 1,500 shares of BEP Ltd. at $120 per share. Assume that BEP pays no dividends. i. How much in cash must Stella put into her account if the initial margin requirement is 60%? (2 marks) ii. How high can the price of the stock go before Stella gets a margin call if the maintenance margin is 40%? (4 marks)

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