You've borrowed $20,000 on margin to buy shares in Bombardier, which is now selling at $80 per
Question:
You've borrowed $20,000 on margin to buy shares in Bombardier, which is now selling at $80 per share. Your account starts at the initial margin requirement of 50%. The minimum margin is 35%. Two days later, the stock price falls to $75 per share.
a. Will you receive a margin call?
b. How low can the price of Bombardier shares fall before you receive a margin call?
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a You will not receive a margin call You borrowed 20000 and with another 2000...View the full answer
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