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Textbook Solution
Business
Corporate Finance
A trader buys 200 shares of a stock on margin
A trader buys 200 shares of a stock on margin
A trader buys 200 shares of a stock on margin. The price of the stock is $20. The initial margin is 60% and the maintenance margin is 30%. How much money does the trader have to provide initially? For what share price is there a margin call?
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