Question
You have $19,916 dollars and you want to buy as many shares as possible of Matt's Electric Cars, LLC, which is currently trading for $44.6
You have $19,916 dollars and you want to buy as many shares as possible of Matt's Electric Cars, LLC, which is currently trading for $44.6 per share. Your broker requires an initial margin of 53% and a maintenance margin of 40%.
Assume that you lever to the maximum (i.e., you buy as many shares as you can given the initial margin constraint). What is the stock price below which a margin call will be triggered? Enter your answer with one decimal point and NO dollar signs or commas (i.e., 30.4, not $30.38). The question will allow for slight rounding errors.
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