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You've borrowed $40,000 on margin to buy shares at Apple, which is now selling at $80 per share. Your account starts at the initial margin
You've borrowed $40,000 on margin to buy shares at Apple, which is now selling at $80 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 45%. Three days later, the stock price of Apple shares fall to $75 per share:- Will you receive a margin call? Explain your answer. How long can the price of Apple shares fall before you receive a margin call?
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