Problem $3-02$

Lauren has a margin account and deposits $$40,000.$ Assume the prevailing margin requirement is $25$ percent, commissions are ignored, and the Gentry Wine Corporation is selling at $$50$ per share.

How many shares can Lauren purchase using the maximum allowable margin? Round your answer down to the nearest whole share, if necessary.

shares

What is Lauren$$s profit $($loss$)$ if the price of Gentry$$s stock

rises to $$55?$ Use a minus sign to enter loss, if any. Round your answer to the nearest dollar. Use the rounded value of the number of shares from part a$.$

$

falls to $$45?$ Use a minus sign to enter loss, if any. Round your answer to the nearest dollar. Use the rounded value of the number of shares from part a$.$

$

If the maintenance margin is $15$ percent, to what price can Gentry Wine fall before Lauren will receive a margin call? Round your answer to the nearest cent. Use the rounded value of the number of shares from part a$.$

$