Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An investor buys $8,000 worth of a stock (200 shares ) priced at $40 per share using 50% initial margin. The broker requires a 30%
An investor buys $8,000 worth of a stock (200 shares ) priced at $40 per share using 50% initial margin. The broker requires a 30% maintenance margin. Two weeks later the stock is selling for $25, which triggers a margin call. How much is the margin call (ignore any interest)?
A)$250
B)$300
C)$400
D)$500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started