D$$e Trader opens a brokerage account and purchases $100$ shares of Internet Dreams at $$56$ per share. She borrows $$3,500$ from her broker to help pay for the purchase. The interest rate on the loan is $9\%.$

$11\mathrm{.}11$

points

eBook

References

Required:

a$.$ What is the margin in D$$e$\text{'}$s account when she first purchases the stock?

Margin $$2,100$

b$.$ If the share price falls to $$46$ per share by the end of the year, what is the remaining margin in her account?

Remaining margin

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