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1 Margin Transaction Example 3 Initial Margin Requirement-50% 4 5 Want to buy 200 shares at $50 per share 7 Total Value - 200*50- 10,000 NO MARGIN 10 Beginning Price End Price Profi Loss Return on 12 Ul 13 10 -10 20.00% -20.00% 40 15 16 17 18 19 20 21 50% MARGIN Beginning Price End Price Profi Loss Return on Ul 23 40 25 26 Maintenance MARGIN 25% 27 If the stock starts to fall, at what price will you get a margin call? 28

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