Question: I. You opened a margin account with from your broker a year ago. Your account started at th initial margin requirement of 80% with the
I. You opened a margin account with from your broker a year ago. Your account started at th initial margin requirement of 80% with the margin account you ought ABC stock at $50 per share. The maintenance margin is 35%. A year later, the stock price/fils to $40 per share. Assume interest rate is 10%. A. How much do you borrow from your broker? ood looroos Will you receive a margin call if the stock price falls to $40 per share? (Please ignore interest expenses and Show percentage margin after price falls) b. oXHo per Shola ooo (4o lo0o 75% ou illn
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
