9) Nelson purchased 1,600 shares of stock for $18.75 a share. The initial margin requirement is 70 percent and the maintenance margin are 40 percent. What is the maximum percent by which the stock price can decline before he receives a margin call?

A) 30 percent

B) 45 percent

C) 50 percent

D) 65 percent

E) 70 percent

10) Eight months ago, Freda purchased 500 shares of stock on margin at a price per share of $35. The initial margin requirement on her account is 70 percent and the maintenance margin are 40 percent. The call money rate is 4.75 percent and she pays 2 percent above that rate. Today, she sold these shares for $37.50 each. What is her annualized rate of return?

A) 8.50 percent

B) 10.61 percent

C) 12.70 percent

D) 14.90 percent

E) 16.42 percent

11) You recently purchased 200 shares of stock at a cost per share of $32.50. The initial margin requirement on this stock is 75 percent and the maintenance margin are 50 percent. The stock is currently valued at $35.00 a share. What is your current margin position? Ignore margin interest.

A) 73.01 percent

B) 73.83 percent

C) 74.95 percent

D) 75.69 percent

E) 76.79 percent

12) Louis purchased 300 shares of stock on margin for $22.15 a share and sold the shares eleven months later for $24.50 a share. The initial margin requirement was 75 percent and the maintenance margin were 30 percent. The interest rate on the margin loan was 8.5 percent. He received no dividend income. What was his holding period return?

A) 7.05 percent

B) 8.45 percent

C) 9.88 percent

D) 10.76 percent

E) 11.56 percent