You buy 200 shares of stock at a price of $78 and an initial margin of 70 percent. If the maintenance margin is 40 percent, at what price will you receive a margin call? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

You short sold 350 shares of stock at a price of $40 and an initial margin of 75 percent. If the maintenance margin is 40 percent, at what share price will you receive a margin call? What is your account equity at this stock price? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Margin call price	$
Account equity	$

3

Youve just opened a margin account with $14,000 at your local brokerage firm. You instruct your broker to purchase 700 shares of Landon Golf stock, which currently sells for $61 per share. Suppose the call money rate is 5.5 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for 6 months and sell at a price of $67 per share. The company paid a dividend of $0.52 per share the day before you sold your stock.

1.	What is your total dollar return from this investment? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Dollar return

$

2.	What is your effective annual rate of return? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Effective annual return

%

You just sold short 600 shares of Wetscope, Inc., a fledgling software firm, at $59 per share. You cover your short when the price hits $49.5 per share one year later. If the company paid $0.65 per share in dividends over this period, what is your rate of return on the investment? Assume an initial margin of 55 percent. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Rate of return

%