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Suppose you are buying stocks on margin. The margin requirement is 4 0 % while the maintenance margin is 2 0 % . Right now,
Suppose you are buying stocks on margin. The margin requirement is while the maintenance margin is Right now, you put $ of your own money and the stock you want to buy today has a price of $ per share.
a How many shares of stock can you buy if you trade on margin?
b What is your own equity percentage when the stock price turns out to be $
c What is the margin call price for you?
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