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You open a brokerage account and purchase 500 shares of MMM at $150 by borrowing half of the required funds (you pay for 250 shares
You open a brokerage account and purchase 500 shares of MMM at $150 by borrowing half of the required funds (you pay for 250 shares and borrow enough to buy another 250 shares). You pay 8% annual interest on the borrowed money. At the end of one year, what price would trigger a margin call if the maintenance margin were set at 35% by the brokerage firm?
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