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You are bullish on Telecom stock. The current market price is $25 per share, and you have $5,000 of your own to invest. You borrow
You are bullish on Telecom stock. The current market price is $25 per share, and you have $5,000 of your own to invest. You borrow an additional $2,500 from your broker and invest $7,500 in the stock. 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.
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