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Q2 Margin account. A hedge fund deposits $50,000 in a margin account. Buys on margin 10,000 shares at $10. Its broker applies the 50% initial
Q2 Margin account. A hedge fund deposits $50,000 in a margin account. Buys on margin 10,000 shares at $10. Its broker applies the 50% initial margin and the 25% maintenance margin requirements Calculate the threshold stock price that triggers a margin call? When the stock price decreases to $6, How much should the hedge fund deposit for the maintenance margin requirement to be met? ( 2 points)
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