Assume your account has a 60 percent initial margin requirement and a 30 percent maintenance margin. The call money rate is 6% and the premium charged by your broker is 2%. Suppose the stock of ICI is selling for Rs. 160 per share. You have Rs. 80,000, and you want to buy as much of this stock as you possibly can. (Do mention your balance sheet). After a year of your investment the stock price changes from 160 to 140 what will be the value of your gains/losses? And at what price you might receive a margin call?

  
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