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You buy 100 shares of stock at $110 per share on margin of 40%. What is your initial margin position (equity and loan)? (b). When
You buy 100 shares of stock at $110 per share on margin of 40%. What is your initial margin position (equity and loan)? (b). When the price declines to $80 per share will you be called upon to put up more margin to meet the 25% rule? If yes, how much equity will you need to add to your account. If no, how much equity do you have over the minimum required.
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