ABC stockbroker offers investors financing to buy stocks with the following requirements:

• - Initial margin

• - Minimum margin

• - Interest rate

• - If subjected to a margin call, the investor must deposit some fund to repay part of his

  debt and return the position to initial margin.

  You buy 100,000 XYZ stocks at the price of Rp 5,000/stock using the margin facility.

1. a) At what price are you subjected to a margin call?

2. b) If XYZ stock price drops to Rp 2,500, how much Rp margin do you have to deposit?

3. c) How much return do you earn if in the next month the stock price is Rp 4,500, and you sell

   all your stocks and pay out your debt and its interest?

KLM stockbroker offers short selling facility to investors with 60% initial margin and 25% minimum margin. If subjected to a margin call, the investor must deposit some fund to return the position to initial margin. You do short selling of 10,000 DEF stocks at the price of Rp 20,000/stock.

4. d) At what price are you subjected to a margin call?

5. e) If DEF stock price rises to Rp 26,000, how much Rp margin do you have to deposit?

6. f) How much return do you earn if in the next month the stock price is Rp 22,000, and you

   are required to buy back DEF stocks?