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5) You've borrowed $18,000 on margin to buy shares in Disney, at $60 per share. Your account starts at the initial margin requirement of 50%.
5) You've borrowed $18,000 on margin to buy shares in Disney, at $60 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 30%. Two days later, the stock price falls to $37 per share. Will you receive a margin call? Show your work. How low can the price of Disney shares fall before you receive a margin call? Show your work.
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