An investor opens a margin account with an initial deposit of $ 5 7 0 0 .

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Question:

An investor opens a margin account with an initial deposit of $

5700 .

He then purchases

450

shares of a stock at $

38 .

His margin account has a maintenance margin requirement of

30 % .

Ignoring commissions and interest, IF the price changed to

48

WHAT IS YOUR NEW EQUITYAT WHAT PRICE YOU WILL GET A MARGIN CALL PRICE?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Feb 26, 2024 12:13 AM

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An investor opens a margin account with an initial deposit of $ 5 7 0 0 .

Question:

Expert Answer:

To calculate the new equity and determine the price at which you will get a margin call we first nee... View the full answer

Income Tax Fundamentals 2013

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