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You have $5000 of your own to invest; and borrow an additional $5000 from your broker. You invest the summed amount in Stock A at
You have $5000 of your own to invest; and borrow an additional $5000 from your broker. You invest the summed amount in Stock A at $50 per share. Assume the stock pays no dividends. How far does the stock price have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. O 35.71 42.53 29.86 O 32.66
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