The margin requirements are : Initial 50/Maintenance 40. Ignore interest.

ABC shares trade at $90. You buy 300 shares for $90 per share in your margin account.

The value of shares is $ #1 ?? . The margin is $ #2 ?? .

A. Stock goes up to $100 i.e. 11.1%.

The total value of shares is $ #3 ?? .

You sell the shares, repay the borrowing and you have $ #4 ?? left.

Your percentage profit is: (Final amt Posted Margin) / Posted Margin = #5 ?? %

B. Ignore A. Stock goes down to $80 i.e. 11.1%.

The total value of shares is $ #6 ?? .

You sell the shares, repay the borrowing and you have $ #7 ?? left.

Your percentage profit is: (Final amt Posted Margin) / Posted Margin = #8 ?? %

C. At what stock price (down) will you get the margin call (i.e. to post more money in the account)?

0.40 = ( ..... .....) / 300P Solve for P = $ ?? #9