Question
Q3. Use the following information about margin trading of Ryans Manufacturing Co.s stocks: Current stock price = $75 or 90 Initial margin requirement (IMR) =
Q3. Use the following information about margin trading of Ryans Manufacturing Co.s stocks:
Current stock price = $75 or 90
Initial margin requirement (IMR) = 35%
Maintenance margin = 30%
Number of shares purchased = 1500
- What is the equity amount in the margin account?
- What is the maximum the investor can borrow from the broker?
- What happens if stock price falls to $65?
- How far can the price fall before the margin call?
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Public Finance In Theory And Practice
Authors: Holley Ulbrich
2nd Edition
041558597X, 978-0415585972
