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suppose you purchase some shares of MLP common stock on margin at $50 per share . The initial margin is 60% and the maintenance margin
suppose you purchase some shares of MLP common stock on margin at $50 per share . The initial margin is 60% and the maintenance margin is 30%.( assume the stock pays no dividends and ignore interest on the margin loan)
a) assume you borrowed $ 3000 from the broker for the purchase with60% margin. How many shares have you bought ?
b) what is the maximum price to trigger a margin call ??
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