Question
You use a 50% margin and invest $6,000 of your own money in LYFT stock at $60 a share. Assume no dividend is paid and
You use a 50% margin and invest $6,000 of your own money in LYFT stock at $60 a share. Assume no dividend is paid and that the maintenance margin is 30%. Ignore interest on margin. What new price of LYFT would trigger a margin call? Please explain.
A.$150.00
B.$20.00
C.$42.86
D.$76.28
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
Personal Finance Building Your Future
Authors: Robert B. Walker, Kristy P. Walker
1st edition
9780077861728, 978-0073530659
