True or False:

1.Your broker requires an initial margin of $4000 and a maintenance margin of $3000 for trading of futures. You make your first future trade by buying futures worth $3000 and there is no change in the value of futures position at the end of the day you initiated the trade. At the end of the next day, that is day one, the value of your futures position decreases by 1500. Based on this information, evaluate whether the following statement is true or false: You will receive a margin call of $1500 at the end of the day one.

2.Assume that markets are efficient and there are sufficient investors in high and low tax brackets. Under these assumptions, if a high dividend paying firm changes its dividend policy to a low dividend payout, the firm's stock price will decrease as a result of change in dividend policy.