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Problem 1: You buy on margin 500 shares @ $28.50. The initial margin requirement is 65%. There is a commission on the purchase of 2.5%.

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Problem 1: You buy on margin 500 shares @ $28.50. The initial margin requirement is 65%. There is a commission on the purchase of 2.5%. After one year, you sell the shares @ $32.75. There is a commission on the sale of 3%. Calculate the return on this investment. oudoor +62.such 02.813 Problem 2 You buy 400 shares of QC for $50 per share and deposit initial margin of 50%. The next day, QC's price drops to $45 per share. What is your actual margin? Problem 3 You purchased 150 shares of XON common stock on margin at $104.25 per share. Assume the initial margin is 50% and the maintenance margin is 35%. At what stock price level would you get a margin call? 26. 2 Problem 4 CON You decide to short sell 250 shares of TG Enterprises Inc. when it is selling at its yearly high of $47.25. Your broker tells you that your margin requirement is 60% and that the commission on the sale is $50, and you will pay a 5% interest on any borrowed funds. While you are short, TG pays a $1.95 dividend per share. a. At the end of one year you decided to cover your short sale at $51.50 and are charged a commission of $35. a. With the information provided above, calculate your monetary profit (loss) and the corresponding % of return. b. Now, assume that you cover your position when the stock price is $42.50, what will be your monetary profit (loss) and the corresponding % of return

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