Assume an initial margin requirement of 50 percent and a maintenance margin of 30 per- cent. An investor buys 100 shares of stock on margin at $60 per share. The

Assume an initial margin requirement of 50 percent and a maintenance margin of 30 per-
cent. An investor buys 100 shares of stock on margin at $60 per share. The price of the
stock subsequently drops to $50.
a. is the actual margin at $50?
b. The price now rises to $55. Is the account restricted?
c. If the price declines to $49, is there a margin call?
d. Assume that the price declines to $45. is the amount of the margin call? At $35?

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