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Emma had a trading account and bought 250 shares of Amazon at the price of $35...

Emma had a trading account and bought 250 shares of Amazon at the price of $35 per share. The amount she borrowed is $3800, and the interest charged on the loan is 6%.

A) Calculate Emma’s initial margin in her trading account.

B) By Dec 31 of the year, the share price has fallen from $35 to $25 per share. Calculate the remaining margin in Emma’s trading account. Will she receive a margin call if the maintenance margin is 35%?

C) What is the rate of return over Emma’s investment period?

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