You buy 700 shares of stock at a price of $88 and an initial margin of...

Question

Question

You buy 700 shares of stock at a price of $88 and an initial margin of 70 percent. If the maintenance margin is 30 percent, a

Answer 1

Answer #1

Margin Call Price = Price(1 - Initial margin)/(1 - Maintenance Margin)

Margin Call Price = 88(1 - 0.70)/(1 - 0.30)

Margin Call Price = $37.71

Answer 2

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