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Your fabulous uncle Zimmy deposits $45,000 cash in a brokerage account and purchases $55,000. of stocks on margin by borrowing $10,000 from a broker.
Your fabulous uncle Zimmy deposits $45,000 cash in a brokerage account and purchases $55,000. of stocks on margin by borrowing $10,000 from a broker. The required maintenance margin is 40%. Later, the value of the stock holdings falls to $47,500. What is the new account margin in percent? Will there be a margin call? 94.74%, No 78.95%, No 81.95%, No 68.18%, No
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