Question
De Trader opens a brokerage account, and purchases 390 shares of Internet Dreams at $56 per share. She borrows $4,050 from her broker to help
De Trader opens a brokerage account, and purchases 390 shares of Internet Dreams at $56 per share. She borrows $4,050 from her broker to help pay for the purchase. The interest rate on the loan is 5%. If the maintenance margin requirement is 34%, what is the (highest) stock price that will trigger a margin call?
| A. | $16.52 | |
| B. | $26.32 | |
| C. | $6.81 | |
| D. | $32.79 | |
| E. | $21.84 |
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Recent Advances In Computational Finance
Authors: Nikolaos S. Thomaidis, Jr. Dash, Gordon H.
1st Edition
1626181233, 978-1626181236
