Question: please show work and any formulas used 4. Define the concepts of Minimum Margin and Maintenance Margin a. Now assume that your margin account requires
4. Define the concepts of Minimum Margin and Maintenance Margin a. Now assume that your margin account requires an initial margin of 50%, and a maintenance margin of 40%. A Share in JMX is selling for $80. You have $40,000, and you want to buy as much WHOA as you can i. How that would be represented in the balance sheet? Assets Llabilities and Account Equity Total: Total b. If the Price decreases to $50 per share, how does the balance sheet would look like? Assets Labilities and Account Equity Total Total C What is the new margin? Will you be having a margin call or not? Why? il d After one year, JMX is selling at $80 per share. Your investment is worth $80,000 (100 shares). You owe 8% on the $40,000 you borrowed. What is tour return after you pay the loan in one year
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