You buy 150 shares worth $7,500. Your initial margin is 60%. Your maintenance margin

requirement (MMR) is 30%. Ignore transaction costs and interest costs in your calculations.

(a) What is the total dollar value of your starting assets?

(b) If the price increases to $60, what is the new margin percentage?

(c) If the price increases to $60, calculate your holding period return.

(d) At what price would a margin call occur?