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1. An investor purchases 200 shares of ABC stock on margin. The current price of ABC stock is $85 per share, the initial margin requirement

1. An investor purchases 200 shares of ABC stock on margin. The current price of ABC stock is $85 per share, the initial margin requirement is 60% and the maintenance margin requirement is 25%.

A) What is the dollar amount of the loan the investor receives from her broker for this margin purchase?

B) How far can the stock price fall before the investor gets a margin call

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