Amount borrowed = (1,800 × $96)(1 – .55) = $77,760
Margin call price = ($77,760 / 1,800) / (1 – .30) = $61.71
Stock price decline = ($61.71 – 96) / $96 = 35.72%
You decide to buy 1,800 shares of stock at a price of $96 and an initial...
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