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Suppose an investor wants to buy 100 shares at a $100 per share, that is $10,000 worth of stock. She has $6,000 and finances her
Suppose an investor wants to buy 100 shares at a $100 per share, that is $10,000 worth of stock. She has $6,000 and finances her investment by borrowing the remaining 4,000 from a broker.
a)Find the initial percentage margin
b)How much is the percentage margin going to be, if the price declines to $70 per share?
c)How much is the percentage margin going to be, if the price declines to $39 per share?
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