Jerri Kingston bought 100 shares of stock at $80 per share using an initial margin of 60%.
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Jerri Kingston bought 100 shares of stock at $80 per share using an initial margin of 60%. Given a maintenance margin of 25%, how far does the stock have to drop before Jerri faces a margin call? (Assume that there are no other securities in the margin account.)
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Market value of securities at purchase 100 80 8000 Debit b...View the full answer
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Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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