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9 You buy on margin 1000 shares of IBM at $95 per share. The initial margin requirements is 50%. The maintenance margin is 40%. The
9 You buy on margin 1000 shares of IBM at $95 per share. The initial margin requirements is 50%. The maintenance margin is 40%. The interest rate on the loan is 10%. The share price falls to $80 a year later. Will you receive a margin call? If so, how much cash would you add to your margin account? A. You would not receive a margin call. You would add $0 cash to your margin account B. You would receive a margin call. You would add $ 12,250 cash to your margin account C. You would receive a margin call. You would add $0 cash to your margin account D. You would receive a margin call. You would add $ 40,000 cash to your margin account E None of the above
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