Question
1. At what price will the investor receive a margin call? Given Purchased 400 shares at $50 per share cash used to buy shares =
1. At what price will the investor receive a margin call?
Given
Purchased 400 shares at $50 per share
cash used to buy shares = $10,000
margin used to buy shares = $10,000
Brokers maintenance margin requirement = 35%
If you dont answer a margin call, then the broker will sell securities to raise the account balance.
PLEASE SHOW EXCEL CALCULATIONS
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Financial Management Of Financial Institutions
Authors: George H Hempel
1st Edition
0133159604, 9780133159608
