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Suppose that stock FFM is traded in the NYSE and all trading in that stock...

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Finance

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Suppose that stock FFM is traded in the NYSE and all trading in that stock is through a limit order book. Further, assume that at July 1,2008 at 10:48 am the limit order book of FFM was empty. Following are the trade orders for FFM after 10:48 am: Create the limit order book for this stock immediately after all the above trades are submitted. That is, create the limit order book immediately after 11:19 am. Question 4: You put in $20,000 and borrow $6,000 from your broker. You purchased 160 shares of APPLE stock (ticker: AAPL) at the price of $162.5 per share. The interest rate your broker charges you is 12% per year. Answer the following questions: a. What is the initial margin? b. The maintenance margin is 25%. How far can the stock price drops before you get a margin call? Ignore interest here. c. One year later, the price of AAPL is $140 per share. Calculate the margin at this time. Calculate the return of this trade over the one-year period

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