Question
You purchased 200 shares of MSFT common stock on margin at $138.2 per share. Assume the initial margin is 45% and the maintenance margin is
You purchased 200 shares of MSFT common stock on margin at $138.2 per share. Assume the initial margin is 45% and the maintenance margin is 33%. You will get a margin call if the stock drops below ________. (Assume the stock pays no dividends and ignore interest on the margin loan.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
