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Suppose you want to buy $20,000 worth of LMT on the margin. You use $10,000 of your own money and borrow $10,000, at an annual

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Suppose you want to buy $20,000 worth of LMT on the margin. You use $10,000 of your own money and borrow $10,000, at an annual interest rate of 2%, so that your initial margin of 50% satisfies legal requirements. (a) If the maintenance margin is 30%, what would the value of the stock position have to be after one year for a margin call to be initiated by your broker? (b) For the change of the value of the stock position you found in part a., and after paying back the loan, what would be the net value of your account? (c) What is the realized return of your investment after one year for the change in value of the stock position found in part a. and after paying back the loan amount? (d) Suppose instead that the stock position increased by the same amount after one year as it decreased in part A. What would be the realized return of your investment after one year for this change in the value of the stock position and after paying back the loan

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