An investor purchased 10,000 shares of ABC @ $55 on margin (Not eligible for reduced margin).

a)What is the maximum broker loan available for this margin purchase? ______________

b)What margin is required from the investor? ______________

c)If the stock price drops to $48, the revised broker loan is: ______________

d)Using the information from part c, the revised margin required

from the investor is: ______________

e)If the original transaction (part a) had been a short instead of

a purchase, the minimum account balance required is: ______________

f) The primary reason that an investor would use leverage is:

g) With a short, the obligation of the investor is: