Question
Suppose that an investor buys 500 shares of Bank of America (BAC) at $30.25 per share on an initial margin of 50% with a margin
Suppose that an investor buys 500 shares of Bank of America (BAC) at $30.25 per share on an initial margin of 50% with a margin loan rate of 6%. If your brokerage requires a 25% maintenance margin, what is the margin call price for BAC stock in one year?
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Capital As Power
Authors: Jonathan Nitzan, Shimshon Bichler
1st Edition
0415496802, 978-0415496803
