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XYZ stockbroker offers investors financing to buy stocks with the following requirements - Initial Margin: 50% ; Minimum Margin: 20% ; If subjected to a
XYZ stockbroker offers investors financing to buy stocks with the following requirements - Initial Margin: 50% ; Minimum Margin: 20% ; If subjected to a margin call, the investor must deposit some fund to repay part of his debt and return the position to minimum margin. You buy 100,000 ABC stocks at the price of Rp1,000/stock using the margin facility. If ABC stock price drops to Rp600, how much Rp do you have to deposit to meet the minimum margin call?*
Rp2 million
Rp1.6 million
Rp0.8 million
Rp1.2 million
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