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2. An investor bought 12,000 shares of Internet Company for $50 per share. The investor chose to put $325,000 down and borrow the difference from
2. An investor bought 12,000 shares of Internet Company for $50 per share. The investor chose to put $325,000 down and borrow the difference from their broker. a . What was the original loan/debit balance and the initial margin on the account? Amount Loan/Debit Balance (2 points) Initial Margin (2 points) SUPPORTING COMPUTATION REQUIRED: b. Since the initial purchase exactly one year ago, the market price of the stock has fallen to $42.75 per share. What is the investor's current margin position on the account after one year? (3 points) Amount Current Margin after One Year (4 points) SUPPORTING COMPUTATION REQUIRED: d. If the market price of the stock suddenly drops to $28.50 per share, what will be the amount of the margin call that the investor will receive? (3 points) Amount Amount of Margin Call (3 points) SUPPORTING COMPUTATION REQUIRED: c. The exchange requires a maintenance margin of 25%. The investor is worried about receiving a margin call. At what price per share will the investor receive a margin call? Amount Margin Call Price per Share (3 points) SUPPORTING COMPUTATION REQUIRED
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