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Q5 Aziz has a margin account and deposits $10.000. Assuming the prevailing margin requirement is 25%, commissions are ignored, and the CorpE is selling at
Q5 Aziz has a margin account and deposits $10.000. Assuming the prevailing margin requirement is 25%, commissions are ignored, and the CorpE is selling at $40 per share. a. How many shares can Aziz purchase using the maximum allowable margin? w b. What is Aziz's profit (loss) if the price of CorpE's stock. Be sure to calculate each seperately. If the profit and loss are different, shortly explain why? i. rises to $50? ii. falls to $30? c. If the maintenance margin is 20%, to what price can CorpE fall Aziz will receive a margin call
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