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John opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. He borrows $4,000 from his broker to help pay
John opens a brokerage account and purchases 300 shares of Internet Dreams at $40 per share. He borrows $4,000 from his broker to help pay for the purchase. Assume the broker has a maintenance margin requirement of 30%. Assume John owes 8% interest for the loan. If the share price falls to $30 per share what is the remaining percent margin in his account? Will John get a margin call? O The percent margin will be 52%. He will not receive a margin call. O The percent margin will be 75%. He will not receive a margin call. O The percent margin will be 52%. He will receive a margin call. O The percent margin will be 75%. He will receive a margin call
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