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You buy on margin 1,000 shares of IBM at $95 per share. The initial margin requirements is 50%.the maintenance margin is 40%. The interest rate
You buy on margin 1,000 shares of IBM at $95 per share. The initial margin requirements is 50%.the maintenance margin is 40%. The interest rate on the loan is 10%. The share price falls to $73 a year later. How much cash would you add to your margin account?
The answer is 11000. But how do we find it?
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