Question: 1) Jane has a margin account and deposits $80,000 into it. Assume that the prevailing margin requirement is 50%, interest and commissions are ignored and

1) Jane has a margin account and deposits $80,000 into it.

1) Jane has a margin account and deposits $80,000 into it. Assume that the prevailing margin requirement is 50%, interest and commissions are ignored and and Alpha Inc. is selling for $47.50a share. a.) How many shares of Alpha Inc. can Jane purchase using the maximum allowable margin? b.) What is Jane's profit or loss if Alpha Inc.'s stock: i.) Rises to $57.25 and Jane sells the stock? ii.) Falls to $31.35 a share and Jane sells the stock? c.) If the maintenance margin is 30%, what price can the stock fall to before Jane receives a margin call

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