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You purchased 100 shares of a common stock on margin at $250 per share. Assume the initial margin is 55%, and interest rate on the
You purchased 100 shares of a common stock on margin at $250 per share. Assume the initial margin is 55%, and interest rate on the borrowing is 6%. If the price falls to $200 per share in 6 months, what is the remaining equity margin in her account? If the maintenance margin requirement is 40%, will she receive a margin call?
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