Question
3. You buy 100 shares of MSFT stock at $38/share, in a 60% initial margin account with a maintenance margin of 50%. c. If the
3. You buy 100 shares of MSFT stock at $38/share, in a 60% initial margin account with a maintenance margin of 50%. c. If the stock price goes down to $25/share, what is the new margin position? d. What amount of cash must be deposited to satisfy margin call? e. If you are unable to provide cash and the broker decides to sell the equity at $25/share to satisfy the margin call, what amount of stock would be sold?
Please help with D and E! I am so confused! The answer for D is 50% and E is 50% but I am so confused as to how to get there, please show all work in excel.
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