Question

You've borrowed $20,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $35 per share.
1. Will you receive a margin call?
2. How low can the price of Disney shares fall before you receive a margin call?



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  • CreatedJuly 29, 2013
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