Assume an investor posts margin of 50 percent and the required margin is 30 percent. Joe buys 200 shares of stock on margin at $70 per share. The price of the stock drops to $60.
a. At the time of purchase, what was the amount of money that Joe would have had to invest?
b. If the price rises to 75, what is the margin in Joe's account in dollars and in percent form?
c. At what price level will Joe be faced with his first margin call?

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The Answer of Assume an investor posts margin of 50 percent and the required margin is 30 percent. Joe buys 200 shares of stock on margin at $70 per share. The price of the stock drops to $60.
a. At the time of purchase, what was the amount of money that Joe would have had to invest?
b. If the price rises to 75, what is the margin in Joe's account in dollars and in percent form?
c. At what price level will Joe be faced with his first margin call?

Assume an Investor Posts Margin of 50 Percent and the Required