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Q6 - You You purchased 100 shares of Preds common stock on margin at $40 per share. w a. Assume the initial margin is 33.3%

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Q6 - You You purchased 100 shares of Preds common stock on margin at $40 per share. w a. Assume the initial margin is 33.3% and the maintenance margin is 20%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin. b. Assume the initial margin is 33.3% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $30? Ignore interest on margin. w

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