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Recently, your roommate purchased 700 shares of TPHB at $12.45 on 50% margin. The stock had been holding its ground, but has cratered over the
- Recently, your roommate purchased 700 shares of TPHB at $12.45 on 50% margin. The stock had been holding its ground, but has cratered over the past few days, and closed today at $7.90. Your roommate received a margin call.
- By what percentage has the stock price declined?
- What is the value of the margin call?
- How much equity would your roommate have in the trading account after making the margin call?
- Suppose your roommate decides to sell instead of make the margin call. What is the return on his investment?
- By what percentage has the stock price declined?
- What is the value of the margin call?
- How much equity would your roommate have in the trading account after making the margin call?
- Suppose your roommate decides to sell instead of make the margin call. What is the return on his investment?
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