Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dale the farmer has half a million which he used to buy stock on margin, assuming he borrowed all he could at a zero percent

Dale the farmer has half a million which he used to buy stock on margin, assuming he borrowed all he could at a zero percent interest rate. At what price will he receive a margin call if his brokers require a 50% initial margin and 34% maintenance margin or equity position. Assume the current price is 68. Please use 5 decimal places in your response.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Beyond Blockchain The Death Of The Dollar And The Rise Of Digital Currency

Authors: Erik Townsend

1st Edition

172917728X, 978-1729177280

More Books

Students also viewed these Finance questions

Question

107 MA ammeter 56 resistor ? V voltmeter

Answered: 1 week ago

Question

Generally If Drug A is an inducer of Drug B , Drug B levels will

Answered: 1 week ago