Suppose you think that the market price of a share of Facebook will increase in the next few months from its current price of $100 per share. Suppose as well that you have $5,000 to invest -- enough money to buy 50 shares. If you buy on margin, though, you can purchase an additional 50 shares for a total of 100 shares. (This assumes a 50% margin requirement.) If three months from now Facebook stock is worth $115 per share and you sell your shares, how much MORE money did you make by buying on margin compared to buying shares without the use of margin.

500

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1500