Example: How Low Can it Go$?$

You buy $300$ shares of Coca$-$Cola $($KO$)$ at $$55$ per share.

$30055=$

$,$ Total cost $$16,500$

$.$ You have only $$9,900-$so you must borrow $$6,600.$

es

$q,$ Your

$is$: $$9,\frac{900}{\text{\$}}16,500=60\%.$

$sin$

Suppose your maintenance margin is $40\%.$ At what price will you receive a margin call?