Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. you purchased 100 share of common stock on marginal at $45 per share. Assume the initial margin is 55%, and the stock pays no

1. you purchased 100 share of common stock on marginal at $45 per share. Assume the initial margin is 55%, and the stock pays no dividend . what would the maintenance margin be if a margin call is made at a stock price of $30? ignore interest on margin.

2.you sold short 100 shares of common stock at $45 per share . The initial margin is 50% . At what stock price would you receive a margin call if the maintenance margin is 30%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Building Your Future

Authors: Robert Walker, Kristy Walker

2nd Edition

0077861728, 9780077861728

More Books

Students also viewed these Finance questions