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Suppose that Intel currently is selling at $20 per share. You buy 1,000 shares using $15,000...

Suppose that Intel currently is selling at $20 per share. You buy 1,000 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. (a) What is the percentage increase in the net worth of your brokerage account if the price of Intel immediately changes to $22. (b) If the maintenance margin is 25%, how low can Intel’s price fall before you get a margin call?

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