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Q3. Margin calculations. a) A client buys 5,000 shares oflisted ABC Company on margin when it sells for $2.25 per share (not eligible for reduced
Q3. Margin calculations. a) A client buys 5,000 shares oflisted ABC Company on margin when it sells for $2.25 per share (not eligible for reduced margin). How much would the investor have to put up as margin? b) Assume the price of ABC's shares declines to $1.85. Will the investor get a margin call? If so, how much? c) Assume that the price of ABC's shares - instead of declining from $2.25 to $1.85 - had increased from $2.25 to $2.75. What amount must be added to, or can be withdrawn from, the account
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