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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.
A) 0.33 | ||
B) 0.55 | ||
C) 0.43 | ||
D) 0.23 | ||
E) 0.25 |
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