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Use the following information to answer Questions 7 - 10. You purchase 200 shares of AMZN at $1,865 per share. The trader borrows $167,850 from
Use the following information to answer Questions 7 - 10. You purchase 200 shares of AMZN at $1,865 per share. The trader borrows $167,850 from their broker at an interest rate of 3.25%. The maintenance margin is 35%. 7. (0.50 points) What is the initial margin in your account? Round to the nearest 0.01%. 8. (0.50 points) If the share price increases to $1,960 per share after 1 year, what is the margin in the account after 1 year? Round to the nearest 0.01%. 9. (1 point) What is the rate of return on the trader's investment if the share price increases to $1,960 per share after 1 year? Round to the nearest 0.01%. 10. (1 point) How far does the share price of AMZN have to fall for the trader to receive a margin call? Round to the nearest 0.01
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