Youve borrowed $20,000 on margin to buy shares in Ixnay, which is now selling at $40 per

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You’ve borrowed $20,000 on margin to buy shares in Ixnay, 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.

a. Will you receive a margin call?

b. How low can the price of Ixnay shares fall before you receive a margin call?

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ISE Essentials Of Investments

ISBN: 9781265450090

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Nov 18, 2023 11:34 PM

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Youve borrowed $20,000 on margin to buy shares in Ixnay, which is now selling at $40 per

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a Yes you will receive a margin call b The margin cal...View the full answer

ISE Essentials Of Investments

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