1. An investor purchases 2000 shares of a stock with a market price of $48/share on a...
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Question:
1. An investor purchases 2000 shares of a stock with a market price of $48/share on a 50% margin (i.e., takes a 50% cash loan from the broker.) The investor is required to maintain a 50% maintenance margin.
A. What is the investor's margin if the price of the stock increase to $53/share?
B. If the price of the stock drops to $43 / share, what is the investor's margin?
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
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