1.a. Calculate capital gain in dollar value and in percentage when you buy at $20 and sell at $30.

Dollar gain=

Percentage gain=

1.b. Calculate the dividend yield when you buy the stock at $20 per share and it pays $0.5 per share in annual dividend.

2a. (10 pts) Assume that you would like to buy 100 shares of a stock that is currently priced at $ 70. The initial margin is 75% and maintenance margin is 35%.

How much would the total purchase amount to in dollars.

How much in total cash of your own do you need in dollars in this example?

How much will you be able to borrow in dollars in this example?