Question
Suppose an investor initially pays $6,000 toward the purchase of $10,000 worth of stock (100 shares at $100 per share), borrowing the remaining $4,000 from
Suppose an investor initially pays $6,000 toward the purchase of $10,000
worth of stock (100 shares at $100 per share), borrowing the remaining $4,000
from a broker.
If maintenance margin = 40%.
How far could the stock price fall before the investor would get margin call?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
2nd Edition
0324117752, 9780324117752
