Question
You are bullish on Telecom stock. The current market price is $40.00 per share, and you have $4,000.00 of your own to invest. You borrow
You are bullish on Telecom stock. The current market price is $40.00 per share, and you have $4,000.00 of your own to invest. You borrow an additional $4,000.00 from your broker at an interest rate of 4.50% per year and invest $8,000.00 in the stock.
b. How far does the price of Telecom stock have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately.
(Round your answer to 2 decimal places and put it in the following format XX.XX. Do NOT record starting 0's.)
Stock price falls below $
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Revealing The Invisible How Our Hidden Behaviors Are Becoming The Most Valuable Commodity Of The 21st Century
Authors: Thomas Koulopoulos ,George Achillias
1st Edition
1682616193, 978-1682616192
