Question
You recently purchased 500 shares of stock at a cost per share of $85. The initial margin requirement on this stock is 60 percent and
You recently purchased 500 shares of stock at a cost per share of $85. The initial margin requirement on this stock is 60 percent and the maintenance margin is 45 percent. The stock is currently valued at $90.00 a share.
a) what is your current margin position in percentage? ignore margin interest
b) how low can the price go before a margin call?
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Case Studies In Finance
Authors: Robert Bruner, Kenneth Eades, Michael Schill
6th Edition
0073382450, 978-0073382456
