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You are bullish on XYZ stock. The current market price is $100 per share, and you have $10,000 of your own to invest. You borrow
You are bullish on XYZ stock. The current market price is $100 per share, and you have $10,000 of your own to invest. You borrow an additional $9,000 from your broker at an interest rate of 10% per year and invest $19,000 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 25%? Assume the price fall happens after one year.
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