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Assume an initial margin requirement of 5 0 percent and a maintenance margin of 3 0 percent. An investor buys 1 0 0 shares of

Assume an initial margin requirement of 50 percent
and a maintenance margin of 30 percent. An investor
buys 100 shares of stock on margin at $60 per share.
The price of the stock subsequently drops to $50.
a. What is the actual margin at $50?
b. The price now rises to $55. Is the account
restricted?
c. If the price declines to $49, is there a margin call?
d. Assume that the price declines to $45. What is
the amount of the margin call? At $35? please answer these questions especially c and d .
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