Question
You purchased 1200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is
You purchased 1200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 40%. You will get a margin call if the stock drops below ________. (Assume the stock pays no dividends, and ignore interest on the margin loan.)
| A. | $66.55 | |
| B. | $12.50 | |
| C. | $83.33 | |
| D. | $30.77 |
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The Economics Of Money Banking And Finance
Authors: Peter Howells, Keith Bain
2nd Edition
0273651080, 978-0273651086
