You are buying 100 shares of Zoom Video Communications, Inc. at the market price of $450 per share. You have $35,000 of

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You are buying 100 shares of Zoom Video Communications, Inc. at
the market price of $450 per share. You have $35,000 of your own
money and borrows the rest of money for the purchase of the stock.
The interest rate on the loan is 8%. Suppose your broker’s initial
margin requirement is 78% of the value of the position and
maintenance margin is 40% of the value of the position.
a. If the share price falls to $350 per share by the end of the
year, what is the remaining margin in your account? (sample answer:
65.60%)
b. What is the rate of return on your investment if the share
price falls to $350 per share by the end of the year? (sample
answer: 15.60% or -15.60%)
c. Assume that a year has passed. How low can the stock price
fall before you get a margin call? (sample answer: $375.50)
d. Assume that you shorted 100 shares at the market price and a
year has passed. How high can the stock price go before you get a
margin call? (sample answer: $375.50)