1. Why are time value concepts important in ordinary business.
2. An investor buys Mattel Inc. (MAT) at $15 per share using $90,000 of his own money and a margin loan. a. With an initial margin of 50% what is the maximum number of shares he can buy? b. If the maintenance margin is 20%, at what price will he get a margin call? And how much money would he need to add? c. If MAT stock price rises to $18, can the investor withdraw fund from the account? If so, how much can he withdraw? (assume section b did not happen).