Question
5. You have a brokerage account in which you hold equity stocks with a balance of $5250. You purchase Microsoft at $52.50 per share. Your
5. You have a brokerage account in which you hold equity stocks with a balance of $5250. You purchase Microsoft at $52.50 per share. Your initial margin is 50%. The following week the price of Microsoft falls to $42. Your maintenance margin is 35%.
a) Will you receive a margin call?
b) At what price does a margin call kick in?
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Introductory Econometrics For Finance
Authors: Chris Brooks
2nd Edition
052169468X, 9780521694681
