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An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The broker charges 10% on the margin loan
An investor buys $10,000 worth of a stock priced at $40 per share using 70% initial margin. The broker charges 10% on the margin loan and requires a 40% maintenance margin. In one year the investor gets a margin call. You will get a margin call if the stock drops below ________.
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