13. Margin Call (LO3, CFA4) Suppose you purchase 500 shares of stock at $48 per share with...
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13. Margin Call (LO3, CFA4) Suppose you purchase 500 shares of stock at $48 per share with an initial cash investment of $8,000. If your broker requires a 30 percent maintenance margin, at what share price will you be subject to a margin call? If you want to keep your position open despite the stock price plunge, what alternatives do you have?
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Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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