Roger opens a margin trading account that has a 20% initial margin requirement. He wishes to invest $20,000 in an oil ETF in the account. If his margin ever falls below 10% he will be required to post more capital to restore the account to the initial margin.

How much capital must Roger needs to post to open the account?

Answer rating: 100% (QA)

The problem is asking us to determine how much capital Roger must post to open a margin trading acco... View the full answer