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Assume you bought 100 shares of stock at $50 per because you feel itll rise to $60 within 3 months. The stock pays $4 per
Assume you bought 100 shares of stock at $50 per because you feel itll rise to $60 within 3 months. The stock pays $4 per share in annual dividends. You are going to buy the stock with 70% margin and will pay 8.5% interest on the margin loan. Unfortunately, the stock price goes to $30 after 3 months, will you receive a margin call if the maintenance margin is 30%?
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