Question 1. Suppose you wish to purchase 2,500 shares of Lockheed-Martin stock on margin. Stock price is$423 per share. Your brokerage firm has an initial margin of 60% and maintenance margin of50%. Assume this is the only position in your brokerage account. Ignore commissions, interest,fees, and taxes.A. If Lockheed Martins stock price becomes $450/share, will there be a margin call? Showmargin formula calculations & explain.B. If Lockheed Martins stock price becomes $400/share, will there be a margin call? Showmargin formula calculations & explain.C. At what stock price will a margin call be triggered for Lockheed-Martin? Show all work.

Question 2. Suppose you wish to short sell 1,025 shares of Tesla stock. Stock price is $249. Your brokeragefirm has an initial margin of 55% and maintenance margin of 40%. Assume this is the onlyposition in your brokerage account. Ignore commissions, interest, fees, and taxes.A. If Tesla stock becomes $300/share, will there be a margin call? Show margin formulacalculations & explain.B. If Tesla stock becomes $200/share, will there be a margin call? Show margin formulacalculations & explain.

Question 3. Suppose you own 750 shares of Boeing stock which you purchased on margin several monthsago. Current stock price is $211. Your loan amount is $120,000. Suppose you just received amargin call. Maintenance margin is 25%. How much additional cash must you give the stockbroker to keep your position? Assume this is the only position in your brokerage account.Ignore commissions, interest, fees, and taxes. Show all work.