Question
You have a margin account with $45,000 in equity, $110,000 in 4000 shares of NIY stock. The account has a maintenance margin of 10%. How
You have a margin account with $45,000 in equity, $110,000 in 4000 shares of NIY stock. The account has a maintenance margin of 10%.
How low can NIY stock fall before you have a margin call?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the minimum stock price at which a margin call would be triggered we need to determine ...
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
