Question $7$

Dee Trader has $$12,000$ and would like to open a brokerage account to invest in Stock Internet Dreams. The current stock price is $$40$ per share.

Part I:

Option A: She does not open a margin account. She can buy

shares. Please round your answer to the nearest integer.

Option B: She uses a margin account and the initial margin requirement is $60\%.$ She can buy

integer.

shares. Please round your answer to the nearest

Part II:

If the stock price rises to $50.$

The return of option A is

$\%.$ Please round your final answer to two decimal places. The return should be expressed in percentages. For example, if

the return is $0\mathrm{.}20$ please write your answer as $20\mathrm{.}00.$ No need to add $\%$ because it is already inserted.

The return of option B is

$\%.$ Please round your final answer to two decimal places.

Part III.

If the stock price drops to $30.$

The return of option $A$ is

$\%.$ Please round your final answer to two decimal places.

The return of option B is

$\%.$ Please round your final answer to two decimal places.

If the maintenance margin is $30\%.$ She will receive a margin call if the price drops to $

$.$Please round your final answer to two decimal places.