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Amanda has a Long position in IBM. She bought 35.57 shares and had a broker loan of $996.20. The initial margin is 59.69% and the

Amanda has a Long position in IBM. She bought 35.57 shares and had a broker loan of $996.20. The initial margin is 59.69% and the maintenance margin is 44.02%. Assume that the price of IBM follows a normal distribution with mean 121.88 and standard deviation 26.67. Assume 0 interest rate on the broker loan.

If the price of IBM is in the lowest 2.28% of the distribution, does Amanda receive a margin call?

Type 1 if Yes, 0 if no.

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