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Mrs Li opened a margin account and bought 200 shares of stock in the BCD Corporation at $80 per share. The initial margin was 70%.
Mrs Li opened a margin account and bought 200 shares of stock in the BCD Corporation at $80 per share. The initial margin was 70%. Shortly after this investment, Mrs Li received a margin call from his broker. The broker explained that Mrs Li's new account did not meet the maintenance margin requirement of 30% because the price of BCD stock fell right after Mrs Li bought it. Compute the price of BCD stock for which Mrs Li 's account violate the 30% margin requirement.
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