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Buying on margin, you invest in 120 shares of Apple stock (AAPL) at $130 per share with an initial margin of 50%. The maintenance margin

Buying on margin, you invest in 120 shares of Apple stock (AAPL) at $130 per share with an initial margin of 50%. The maintenance margin is 40%.

1. What is your assets, liabilities (loan), and equity (net worth)?

2. Suppose that the stock price becomes $100 per share. What is the % margin in your account? Will you receive a margin call?

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