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An investor buys $8,000 worth of a stock priced at $40 per share using 50% initial margin. The broker charges 10% on the margin
An investor buys $8,000 worth of a stock priced at $40 per share using 50% initial margin. The broker charges 10% on the margin loan and requires a 30% maintenance margin. In 1 year the investor has interest payable and gets a margin call. At the time of the margin call the stock's price must have been less than $31.43 $20 $30.29 $29.77
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