1. The price of Facebook stock is currently at $31.54 and you decide to buy 120 shares on margin. You borrow $1,500 from your broker and finance the remainder of the purchase with your own cash. a. What is your initial percentage margin? b. If the price rises to $35, what is the net return? c. If the broker's maintenance margin is 40%, what is the minimum value that Facebook stock price can take before you are issued a margin call?

2. You buy 400 shares of stock at a price of $37.79. The initial margin requirement is 50% and the maintenance margin is 30%. a. How much do you borrow? b. At what price will you first receive a margin call?