Answered step by step
Verified Expert Solution
Question
1 Approved Answer
1. You buy 100 shares of a stock on margin at $30 a share. If the initial margin is .5, and the maintenance margin requirement
1. You buy 100 shares of a stock on margin at $30 a share. If the initial margin is .5, and the maintenance margin requirement is .2, what share price will trigger a margin call? (Round to the nearest cent. Don't include the $ symbol in your answer)
2. You short sell 100 shares of a stock at $70. If the initial margin is .5 and the maintenance margin requirement is .3, what price will trigger a margin call? (Round to the nearest cent. Don't include the $ symbol in your answer)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started