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Problem 2 Using the below given information, answer the following 4 questions: Suppose that you are bullish on Adidas Stocks. You buy 50 shares at

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Problem 2 Using the below given information, answer the following 4 questions: Suppose that you are bullish on Adidas Stocks. You buy 50 shares at the current stock price of $209/share. To afford your purchase, you have borrowed $5,000 from your broker at 5% interest rate. 1. How much you need to put up in order to do the transaction? O a. $5,000 O b. $5,450 O c. $9,500 d. $10,450 e. None of the above 2. Assume that after one year you get a margin call when the stock price reaches $175/share, what is the maintenance margin in this case?* O a. 42.85% O b. 30% OC. 40% O d. 49.76% O e None of the above 3. After one year. Adidas's stock price has reached $*X"/share. The remaining percentage margin in your account is 48.78%. What is the value of "x"? O a. 195.23 b. 205.0 O c. 165.5 O d. 168.0 e. None of the above 4. Based on the result of questions 2 & 3, will you receive a margin call from your broker when the price of Adidas's stock reaches "x"?" O a. No, since "x" is less than $175 O b. No, since "x" is higher than $175 O c. Yes, since "X" is less than $175 O d. Yes, since "x" is higher than $175 O e. None of the above

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