Chapter $3$ Assignments

$1.$ D$$e Trader opens a brokerage account and purchases $200$ shares of Internet Dreams at $$44$ per

share. She borrows $$4,150$ from her broker to help pay for the purchase. The interest rate on the

loan is $10\%.$

a$.$ What is the margin in D$$e$$s account when she first purchases the stock?

b$.$ If the share price falls to $$34$ per share by the end of the year, what is the remaining margin in her

account?

c$.$ If the maintenance margin requirement is $30\%,$ will she receive a margin call?

d$.$ What is the rate of return on her investment?