Laura is currently 120 shares long in the Clorox Company (tic:CLX). Laura has $2,009 in hand and borrowed $4,396 from the broker. The current price of CLX is 115. What is the lowest price of CLX that Laura can tolerate before running out of cash? Assume the initial margin to be 40%. The maintenance margin is 39%.

Answer rating: 100% (QA)

To calculate the lowest price of CLX that Laura can tolerate before running out of cash we need to f... View the full answer