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Mr. Przebinda's margin account has an initial margin of 60% and a maintenance margin of 30%.The spot price of stock AB is $110 per share.
Mr. Przebinda's margin account has an initial margin of 60% and a maintenance margin of 30%.The spot price of stock AB is $110 per share. Mr. Przebinda had $7260 in his account and has justbought 110 shares of AB on margin. Is Mr. Przebinda going to receive a margin call if the price ofAB drops to $86 per share? (in case of no margin call please choose the option with $0)
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