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Question (2): You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance

image text in transcribed Question (2): You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 30%. a) At what price the margin call status will occur? (Assume the stock pays no dividends, and ignore interest on the margin loan. (1 Marks) b) If the price level in point (a) is reached, calculate the amount of the additional deposit needed to maintain the position opened. (1 Marks) Question (3): Explain the agency problem, make sure you define the problem, explain its causes and the measures can be taken to mitigate its effect. (2 Marks)

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