Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You purchased 100 shares of common stock on margin at $45 per share. Assume the initial margin is 50% and the stock pays no dividend.

You purchased 100 shares of common stock on margin at $45 per share. Assume the initial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $30? Ignore interest on margin.
0.33
0.55
0.43
0.23
0.25

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CFIN

Authors: Scott Besley, Eugene Brigham

5th edition

1305661656, 9781305888036 , 978-1305666870

More Books

Students also viewed these Finance questions

Question

How can splitting a table improve performance?

Answered: 1 week ago

Question

Distinguish between incremental and marginal costs. (pp. 38-40)

Answered: 1 week ago