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You've borrowed $20,000 on margin to buy shares in Disney, which is now selling at S40 per share. Your account starts at the initial margin
You've borrowed $20,000 on margin to buy shares in Disney, which is now selling at S40 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 $35 per share. What is the percentage margin on the above transaction? (Round your answer to 2 decimal places.) Will you receive a margin call? How low can the price of Disney shares fall before you receive a margin call? (Round your answer to 2 decimal places.)
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