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Provide your detailed explanations to the following questions: 1) You purchase 550 shares of Unilever Co. stock on margin at a price of $65. Your
Provide your detailed explanations to the following questions: 1) You purchase 550 shares of Unilever Co. stock on margin at a price of $65. Your broker requires you to deposit $12,514. What is your margin loan amount? What is the initial margin requirement? 2) Suppose you sell the stock at a price of $70. What is your return? What would your return have been had you purchased the stock without margin? What if the stock price is $55 when you sell the stock?
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