SECTION B-PROBLEMS 1. Buying on Margin a. Assume you want to buy 100 shares of GM on margin, when the price&s P $76,the initial margin requirement is 60%, and the maintenance margin is 30%. How much money can you borrow, and how much do you have to finance with your own funds? Parts b and c are independent of each other. That is, for either part, you will assume that your starting point is part a. b. Assume the stock price falls to P' $40. Calculate the actual margin. Do you receive a margin call? If yes, show how to reinstate the maintenance margin by selling off securities in the margin account to pay back part of the loan. c. Now, assume the stock price increases to P' $115, and you decide to close your position (also, assume a zero rate of interest on the loan). Calculate the rate of return on the margin purchase. If, instead, you had purchased the security with your own funds only, what would have been the rate of return