Assume a trader enters into an arrangement to purchase some shares on margin. The trader enters the trade to purchase 2,8000 shares at $13.50 each on margin which requires an initial margin of 40% and a maintenance margin of 30%.

What initial amount is the trader expected to pay into the margin account?

Show what action is any is taken if the price of the shares decline to $12  the price of the shares decline to $11.25 

Answer rating: 100% (QA)

To calculate the initial amount the trader is expected to pay into the margin account we need to det... View the full answer