On August 10, 2015, Google Inc. announced a new restructuring plane to form a parent holding company called Alphabet after the market closed. Therefore, you believed that Google stock was undervalued and bought 100 shares on margin at a price of $690 per share the next day. The initial margin requirement is 45% and the maintenance margin is 30%. The annual cost of the margin loan is 3%.

(a) Determine your initial margin requirement and the loan amount

(b) Two week later, Googles stock price declined to $612. What was the return on your investment?

(c) Googles stock price can fall to what level before you will receive a margin call.