Question: 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.

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?

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