Question
The margin requirement on a stock purchase is 50%, and the maintenance margin requirement is 30%. You fully use the margin allowed to purchase 1,000
The margin requirement on a stock purchase is 50%, and the maintenance margin requirement is 30%. You fully use the margin allowed to purchase 1,000 shares of JPM at $60. Assume there are no dividends and that the interest rate on the margin loan is 5%. If one year has passed, what share price for JPM could trigger a margin call?
| A. | $42.86 | |
| B. | $45.00 | |
| C. | $48.00 | |
| D. | $48.33 |
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Health Care Budgeting And Financial Management
Authors: William J. Ward Jr.
2nd Edition
1440833052, 9781440833052
