Suppose you purchase 500 shares of AAPL at $318. Initial margin is 60%. Maintenance margin is...

Suppose you purchase 500 shares of AAPL at $318. Initial margin is 60%. Maintenance margin is 35%. Answer the following questions:

How much money do you borrow with the initial transaction?
If AAPL stock rises to $347, calculate YOUR holding period return.
How far would AAPL stock have to fall for you to receive a margin call?
If your broker charges a call loan rate of 8%, how does that change your answer for c? (assume the price drop occurs in 1 year).

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