Janet has an existing share portfolio valued at $120,000. She uses this to establish a margin loan
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Question:
Janet has an existing share portfolio valued at $120,000. She uses this to establish a margin loan with an LVR of 35%. The current maximum LVR offered by her margin lending provider is 70%. Furthermore, a buffer of 10% exists whereby a margin call willbe triggered. What must Janet's portfolio fall below for a margin call to be triggered?
a. $51,692
b. $80,769
c. $92,307
d. $99,408
Related Book For
Operations Management Managing Global Supply Chains
ISBN: 978-1506302935
1st edition
Authors: Ray R. Venkataraman, Jeffrey K. Pinto
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