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You received a cash bonus of $20,000 from your company so you decided to invest that money in MMM Stocks. The current stock price of
You received a cash bonus of $20,000 from your company so you decided to invest that money in MMM Stocks. The current stock price of MMM is $100. Assume that the initial margin is 50%. a) If you buy MMM on margin then what is the maximum number of shares you can buy? b) If the price of MMM goes down then you may receive a margin call. At what price will you receive a margin call from your broker? (Assume that the maintenance margin is 30% and you can ignore the interest payments on the loan) c) If the price fell to this level and you don
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