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Use the information below for the following 3 problems. Thanks for your help!
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1. Jackie has a margin account with a balance of $45,000. If initial margin requirements are 50 percent and Turtle Industries is currently selling at $50 per share: How many shares of Turtle can Jackie purchase?
a. 1,800
b. 100
c. 900
d. 10,000
e. None of the above
2. Use the same data: What is Jackie's profit if Turtle's price rises to $60?
a. $12,000
b. $18,000
c. $22,000
d. $25,750
e. $28,570
3. Use the same data as the previous questions. If the maintenance margin is 30 percent, to what price can Turtle Industries fall before Jackie receives a margin call?
a. $21.75
b. $23.17
c. $32.42
d. $35.71
e. None of the above