Which of the following statements concerning margin trading is (are) correct? 1. The purchase of stock with cash in the hope of earning a capital gain is known as taking a long margined position in the stock. II. Margin trading magnifies losses on a percentage basis. III. Margin trading requires the borrowing of securities. IV. If Fred buys 1,000 worth of stock using 60% margin, he will need to pay 400 in cash to make the purchase. A. I, III and IV only B. II only OC. II, III and IV only OD. I and II only