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A trader opened a margin account 3 months ago, just meeting the 20% initial margin requirement. Since then, the stock has fallen 15% while the
- A trader opened a margin account 3 months ago, just meeting the 20% initial margin requirement. Since then, the stock has fallen 15% while the loan has increased by 3%. If the maintenance margin is 10% and when a call happens the account holder must return to at least the maintenance margin, then what would happen now?
A.Cannot be determined as the dollar value of the position was not given
B.He must meet a margin call equal to ~6.6% of the original value
C.He must meet a margin call equal to 15% of the original value
D.He must meet a margin call equal to 18% of the original value
E.There is no margin call, so nothing happens
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