Question
Suppose you purchased1000 shares of student.com for Rs 70 per share. Initial Margin is 50%. Maintenance Margin is 40%. Suppose the stock price drops to
Suppose you purchased1000 shares of student.com for Rs 70 per share. Initial Margin is 50%. Maintenance Margin is 40%. Suppose the stock price drops to Rs 60. Do you need to put additional funds in your account? Calculate the Breakeven price student.com can fall before you receive a margin call?. Suppose the price rises to 80. What is the Rate of Return on your investment?
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
