5a. Assume you purchased 900 shares of MMM common stock in a margin account at $119 per share from your broker. The initial margin is 70%.

What share price would produce a margin call if the maintenance margin is 25%?

5b. What would your rate of return be if you sell the stock at $137 per share after 1 year? Interest on the loan is 7% annually.

5c. You short 900 shares of United Healthcare common stock at $668. The broker's initial margin requirement is 50% of the value of the short position. What share price would produce a margin call if the maintenance margin is 30%?

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