The current price of a stock is ($25) per share. You have ($10),000 to invest. You borrow

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The current price of a stock is \($25\) per share. You have \($10\),000 to invest. You borrow an additional \($10\),000 from your broker and invest \($20\),000 in the stock. If the maintenance margin is 30 percent, at what price will a margin call first occur?

A. \($9.62\).

B. \($17.86\).

C. \($19.71\).

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Related Book For  answer-question

Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

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