(Answered) 1 kathryn purchased 1200 shares of stock for 50 a share the

Economics

1. Kathryn purchased 1200 shares of stock for $50 a share. The initial margin is 60 percent and the maintenance margin is 45 percent.

a. Construct a balance sheet depicting this transaction. Label each item such as Equity and so on.

b. What is your equity value if stock goes up to $57 per share? What is the new margin?

c. What is your equity value if stock goes down to $43? What is the new margin?

d. If the stock price falls below _____ Kathryn will receive a margin call.

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