... company. The initial margin requirement is 40% and ABC’s stock price is currently K50. Ignore taxes, commissions and interest on the amount borrowed.
A. How many share of ABC can Rob buy from his margin account?
[4 MARKS]
B. What is Rob’s percentage return if he buys the stock on margin and the price increases to K55? [4 MARKS]

C. If the maintenance margin is 30%, at what price would Rob receive a margin call from his broker? [7 MARKS