1. You purchase 100 shares of a security at $10 per share using a 50% margin. What is your investment return given that the security is sold at $11 per share?

2. You purchase 1,000 shares of a security at $10 per share using 50% margin. What is your investment return given that the security is sold at $9 per share?

3. At what price will the investor receive a margin call?

Given

Purchased 400 shares at $50 per share

cash used to buy shares = $10,000

margin used to buy shares = $10,000

Brokers maintenance margin requirement = 35%

If you dont answer a margin call, then the broker will sell securities to raise the account balance.

PLEASE SHOW EXCEL CALCULATIONS