Assume that the maintenance margin is 30 percent, with a 50 percent initial margin, and that the

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Assume that the maintenance margin is 30 percent, with a 50 percent initial margin, and that the price of the stock declines from $90 to $80 per share. Equation 5-3 is used to calculate actual margin:

Actual margin% = 43.75% = Current value of securities - Amount borrowed Current value of securities

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Investments Analysis And Management

ISBN: 9781118975589

13th Edition

Authors: Charles P. Jones, Gerald R. Jensen

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