Question
Warren purchased 500 shares of Telsa Motors (TSLA) stock trading at $40 per share. Assume that Warrens account has an initial margin requirement of 60%.
Warren purchased 500 shares of Telsa Motors (TSLA) stock trading at $40 per share. Assume that Warrens account has an initial margin requirement of 60%. Moreover, suppose Warrens broker requires a maintenance margin of 30%.
Required
Calculate the price at which Warren will receive a margin call.
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Money, Banking, Financial Markets & Institutions
Authors: Michael Brandl
2nd Edition
1337904821, 9781337904827
