Paula opens a brokerage account and purchases 200 shares of D-Mobile at $40 per share. Paula borrows $4,000 from her broker to help pay for the purchase. Assume the interest rate on the loan is 0% and the stocks pay no dividends.

-What is the margin in Paulas account when she first purchases the stock?

- If the share price falls to $30 per share by the end of the year, what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call?

-What is the rate of return on her investment?

Jannik sells short 100 shares.

- What is the monetary value of the cash or securities Jannik would put into his brokerage account if the brokers initial margin requirement is 60% of the value of the short position?

-How high can the price of the stock go before Jannik gets a margin call if the maintenance margin is 30% of the value of the short position?