Intro

The price of Facebook stock is currently at $31.54 and you decide to buy 130 shares on margin. You borrow $1,500 from your broker and finance the remainder of the purchase with your own cash.

Attempt 1/10 for 10 pts.

Part 1

What is your initial percentage margin?

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Attempt 1/10 for 10 pts.

Part 2

If the price rises to $35, what is the net return?

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Attempt 1/10 for 10 pts.

Part 3

If the broker's maintenance margin is 40%, what is the minimum value that Facebook stock price can take before you are issued a margin call?

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