Suppose that Xtel currently is selling at $50 per share. You buy 700 shares using $28,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 7%.

a. What is the percentage increase in the net worth of your brokerage account if the price of Xtel immediately changes to (a) $56; (b) $50; (c) $44? (Leave no cells blank - be certain to enter "0" 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 Xtels price fall before you get a margin call? (Round your answer to 2 decimal places.) Price

c. How would your answer to requirement 2 wouldchange if you had financed the initial purchase with only $17,500 of your own money? (Round your answer to 2 decimal places.) Strike price