Graham bought 4452 shares at $60.74 and has an initial and maintenance margin of 30% on his
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Graham bought 4452 shares at $60.74 and has an initial and maintenance margin of 30% on his account. When he opened the account, 11 months ago, he just met the minimal margin requirements. The cost of the loan for the margin trade was 5.2% EAR. If any margin calls happen, he must respect the new loan balance. Given that the stock has just attained the price of $9.08, how much of a margin call (in dollars/$) must Graham meet?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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