Question
Inside Traders opens a brokerage account and purchases 1,500 shares of Energy Innovations at $370 per share. They borrow $300,000 to pay for the stock.
Inside Traders opens a brokerage account and purchases 1,500 shares of Energy Innovations at $370 per share. They borrow $300,000 to pay for the stock. The interest rate on the loan is 9%. If the maintenance margin requirement is 25%, how low can the stock price go in one year before a margin call would be made?
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International Finance Transactions Policy And Regulation
Authors: Hal Scott, Anna Gelpern
20th Edition
1609303164, 978-1609303167
