1. An investor purchases 2000 shares of a stock with a market price of $48/share on a 50% margin (i.e., takes a 50% cash loan from the broker.) The investor is required to maintain a 50% maintenance margin.

A. What is the investor's margin if the price of the stock increase to $53/share?

B. If the price of the stock drops to $43 / share, what is the investor's margin?

Answer rating: 100% (QA)

To calculate the investors margin in each scenario well first determine the initial investment the l... View the full answer