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You purchased 1000 shares of ABC common stock on margin at $20 per share. Assume the initial margin is 50% and the maintenance margin is
You purchased 1000 shares of ABC common stock on margin at $20 per share. Assume the initial margin is 50% and the maintenance margin is 25%. You will get a margin call if the stock drops below ________. (Assume the stock pays no dividends and ignore interest on the margin loan.)
$10 | ||
$12.25 | ||
$13.33 | ||
$15 |
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