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Sarah bought 150 shares of Verizon at $54/share and borrowed the maximum amount of money given an initial margin requirement of 70%. If the stock

Sarah bought 150 shares of Verizon at $54/share and borrowed the maximum amount of money given an initial margin requirement of 70%.

  • If the stock price increases to $60 per share, what will be her equity position (%) and her rate of return?
  • If the maintenance margin is 30%, what is the margin call price?

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