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Suppose that Xtel currently is selling at $50 per share. You buy 500 shares using $20,000 of your own money, borrowing the remainder of the

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Suppose that Xtel currently is selling at $50 per share. You buy 500 shares using $20,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8% a. What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediarely changes to (a) $56; (b) \$50; (c) \$44? (Leave no cells blank - be certain to enter "O" wherever required. Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.) b. If the maintenance margin is 20\%, how low can Xtel's price fall before you get a margin call? (Round your answer to 2 decimat places.) Price $ c. How would your answer to requirement 2 would change if you had financed the initial purchase with only $12,500 of your own money? (Round your answer to 2 decimal places.) Strike price

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