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Urgent! Will upvote. You open a brokerage account and purchase 1,000 shares of ABC stock at $87.23 by borrowing half of the required funds (you
Urgent! Will upvote.
You open a brokerage account and purchase 1,000 shares of ABC stock at $87.23 by borrowing half of the required funds (you pay for 500 shares and borrow enough to buy another 500 shares). You pay 8% annual interest on the borrowed money. At the end of one year, what price would trigger a margin call if the maintenance margin were set at 30% by the brokerage firm? $59.58$65.91$67.29$63.45Step by Step Solution
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