Suppose you opened up a margin account and deposited AED 120,000 of your own cash. At...
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Suppose you opened up a margin account and deposited AED 120,000 of your own cash. At a 50% margin, AED 120,000 is borrowed on margin, so the total funding available to be spent on securities is AED 240,000, which you decided to spend entirely on a portfolio of stocks. The Initial Purchase Price (Po) = AED 120,000 Assuming a 50% initial margin and 20% maintenance margin, you are required to calculate the margin call price and confirm whether there will be a margin call or not? Suppose you opened up a margin account and deposited AED 120,000 of your own cash. At a 50% margin, AED 120,000 is borrowed on margin, so the total funding available to be spent on securities is AED 240,000, which you decided to spend entirely on a portfolio of stocks. The Initial Purchase Price (Po) = AED 120,000 Assuming a 50% initial margin and 20% maintenance margin, you are required to calculate the margin call price and confirm whether there will be a margin call or not?
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Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date:
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