A trader buys 200 shares of a stock on margin. The price of the stock is $20.

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A trader buys 200 shares of a stock on margin. The price of the stock is $20. The initial margin is 60% and the maintenance margin is 30%. How much money does the trader have to provide initially? For what share price is there a margin call?

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Risk Management and Financial Institutions

ISBN: 978-1118955949

4th edition

Authors: Hull John

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Question Posted: Jul 30, 2015 03:11 AM

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A trader buys 200 shares of a stock on margin. The price of the stock is $20.

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The trader has to provide 60 of the price of the stock or 2400 There is a margin cal...View the full answer

Risk Management and Financial Institutions

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