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faster faster Dr, shufia A. Abed Q1. John is opening a margin account with $12,500 in cash. The initiat margin is 60 percent and the
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Dr, shufia A. Abed Q1. John is opening a margin account with $12,500 in cash. The initiat margin is 60 percent and the maintenance margin is 40 percent. What is the maximum number of shares he can purchase of a stock which is priced at $42 a share? And what is the maximum number of shares he can purchase if the initial margin become 50s ? Q2. You want to buy shares of IBM stocks which is selling for $14 a share. Your margin account currently has available cash of $4900, what is the maximum number of shares you can purchase if the initial margin requirements is 70 percent and the maintenance margin 30% ? How low can IBM stocks before margin call from the broker Step by Step Solution
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