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Rodomir bought 5751 shares at $86.22 and has an initial and maintenance margin of 30% on his account. When he opened the account, 11 months
Rodomir bought 5751 shares at $86.22 and has an initial and maintenance margin of 30% on his account.
When he opened the account, 11 months ago, he just met the minimal margin requirements.
The cost of the loan for the margin trade was 6.5% EAR. If any margin calls happen, he must respect the new loan balance.
Given that the stock has just attained the price of $11.55, how much of a margin call (in dollars/$) must Rodomir meet?
If there is no margin call, simply put the value zero.
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