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Daniel borrowed $18,000 on margin to buy shares in TARRY, which is now selling at $34 per share. Daniels account starts at the initial margin
- Daniel borrowed $18,000 on margin to buy shares in TARRY, which is now selling at $34 per share. Daniels account starts at the initial margin requirement of 40%. The maintenance margin is 30%. Two days later, the stock price falls to $32 per share.
a. Will Daniel receive a margin call?
b. How low can the price of TARRY shares fall before Daniel receive a margin call
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Introductory Econometrics For Finance
Authors: Chris Brooks
4th Edition
110843682X, 9781108436823
