the topic is Investments in Finance.Answer the question below and fill in all blanks!

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Investors Expectation About the future The money investors have The Broker Loan Stock Price At time 0 Stock Price At time 1 a) Dealer firm b) Broker firm c) Bank d) Federal Reserve e) Investment Bank b) Each investor will deposit their money to their account at c) What will be the initial margin of each investor? ASSETS In the table you see three types of investors. Each investor will choose a strategy corresponding their expectations. ASSETS a) What will the preferred strategy of each investor be? How is it possible to get profit with that strategy? ASSETS John Bullish ASSETS ASSETS ASSETS d) What will be the initial balance sheet of each investor? (you can fill out the following tables, if you fill more comfortable with handwritten drawings' they are more than welcome) John Jack $50,000 $100,000 $50,000 $150,000 Julia $100 $120 lack Bearish John Jack Julia $50 $40 Julia Bullish $150,000 $225,000 e) What will be the balance sheet of the each investor at the end of the period? $75 $30 LIABILITIES and EQUITY LIABILITIES and EQUITY LIABILITIES and EQUITY LIABILITIES and EQUITY LIABILITIES and EQUITY LIABILITIES and EQUITY

tuctent . fire 4 9) What will be the ending margin of each investor? 8) What is the net retum or loss of each investor? h) Which of your conclusions in part f is less likely to occur why? i) If margin call is 0.4 for the broker, what will be the margin call price? \begin{tabular}{|l|r|r|r|} \hline & \multicolumn{1}{|l|}{ John } & \multicolumn{1}{l|}{ Jack } & \multicolumn{1}{l|}{ Julia } \\ \hline Investors' Expectation About the future & Bullish & \multicolumn{1}{l|}{ Bearish } & \multicolumn{1}{l|}{ Bullish } \\ \hline The money investors have & $50,000 & $100,000 & $150,000 \\ \hline The Broker Loan & $50,000 & $150,000 & $225,000 \\ \hline Stock Price At time 0 & $100 & $50 & $75 \\ \hline Stock Price At time 1 & $120 & $40 & $30 \\ \hline \end{tabular} tuctent . fire 4 9) What will be the ending margin of each investor? 8) What is the net retum or loss of each investor? h) Which of your conclusions in part f is less likely to occur why? i) If margin call is 0.4 for the broker, what will be the margin call price? \begin{tabular}{|l|r|r|r|} \hline & \multicolumn{1}{|l|}{ John } & \multicolumn{1}{l|}{ Jack } & \multicolumn{1}{l|}{ Julia } \\ \hline Investors' Expectation About the future & Bullish & \multicolumn{1}{l|}{ Bearish } & \multicolumn{1}{l|}{ Bullish } \\ \hline The money investors have & $50,000 & $100,000 & $150,000 \\ \hline The Broker Loan & $50,000 & $150,000 & $225,000 \\ \hline Stock Price At time 0 & $100 & $50 & $75 \\ \hline Stock Price At time 1 & $120 & $40 & $30 \\ \hline \end{tabular}