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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.
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