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20. An investor is thinking about buying on margin 500 shares of Tesla. The price of Tesla stock today is 190 USD per share.
20. An investor is thinking about buying on margin 500 shares of Tesla. The price of Tesla stock today is 190 USD per share. Since the investor only has available 75,000 USD, he has to borrow the difference from his broker. Assuming a maintenance margin of 30%, please determine the price for Tesla stock that will trigger a margin call from the broker if the investor actually undertakes the investment today.
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