What is the initial margin requirement

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1) You purchase 220 shares of 2nd Chance Co. stock on margin at a price of $55. Your broker requires you to deposit $6,000. What is your margin loan amount? What is the initial margin requirement?

2) In the previous problem, suppose you sell the stock at a price of $62. What is your return? What would your return have been had you purchased the stock without margin?

Suppose the stock price is $46 when you sell the stock. What is your return? What would your return have been had you purchased the stock without margin?

Reference no: EM131815258

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