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16) Shakee Venture wants to purchase 1,000 shares of an Internet technology stock for $15 a share. She figures that she needs $15,000 plus $90
16) Shakee Venture wants to purchase 1,000 shares of an Internet technology stock for $15 a share. She figures that she needs $15,000 plus $90 brokerage commission to purchase the stock. She currently has $8,000 of liquidity in her money market account. 1. What can Shakee borrow on margin in order to make the transaction? T 1 1 2. If the stock jumps to $50 per share within a week, how much will Shakee realize in profit after paying her broker? 3. If the stock dropped to $5 per share, rather than increasing to $50, and the. broker put in the margin call, how much must Shakee pay the broker? 4. Based on beginning account balance of $8,000, what is Shakee's loss
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