Question
You purchased 80 shares of ABC common stock on margin at $100 per share. Assume the initial margin is 50% and the maintenance margin is
-
You purchased 80 shares of ABC common stock on margin at $100 per share. Assume the initial margin is 50% and the maintenance margin is 35%. You will get a margin call if the stock price drops below ________. (Assume the stock pays no dividends, and ignore interest on the margin loan.)
$68.59
$76.92
$46.67
$50.12
You purchased 80 shares of ABC common stock on margin at $100 per share. Assume the initial margin is 50% and the maintenance margin is 35%. You will get a margin call if the stock price drops below ________. (Assume the stock pays no dividends, and ignore interest on the margin loan.)
| $68.59 | ||
| $76.92 | ||
| $46.67 | ||
| $50.12 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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
Physics of Everyday Phenomena A conceptual Introduction to physics
Authors: W. Thomas Griffith, Juliet W. Brosing
6th edition
9780073513904, 73513903, 9781259894008, 1259894002, 978-0073512112
