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You've borrowed $12,000 on margin to buy shares in Ixnay, which is now selling at $48 per share. Your account starts at the initial margin

You've borrowed $12,000 on margin to buy shares in Ixnay, which is now selling at $48 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $46 per share.

1. Will you receive a margin call?

Yes

No

2. How low can the price of Ixnay shares fall before you receive a margin call?

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