Answered step by step
Verified Expert Solution
Question
1 Approved Answer
2. If the ETF is initially trading at $160/share when he opens the account, how low may the price fall to before triggering a margin
2. If the ETF is initially trading at $160/share when he opens the account, how low may the price fall to before triggering a margin call? A) A call will be triggered immediately, Roger must post an additional $4800 or the account will be shut B) The price may fall by 20% ($32/share) before a call is triggered C) The price may fall by 11.11% ($17.77/share) before a call is triggered D) The price may fall by 10% ($16/share) before a call is triggered E) The price may fall by 90% ($/share) before a call is triggered
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