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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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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