Question: Suppose you opened up a margin account and deposited AED 120,000 of your own cash. At a 50% margin, AED 120,000 is borrowed on

Suppose you opened up a margin account and deposited AED 120,000 of

Suppose you opened up a margin account and deposited AED 120,000 of your own cash. At a 50% margin, AED 120,000 is borrowed on margin, so the total funding available to be spent on securities is AED 240,000, which you decided to spend entirely on a portfolio of stocks. The Initial Purchase Price (Po) = AED 120,000 Assuming a 50% initial margin and 20% maintenance margin, you are required to calculate the margin call price and confirm whether there will be a margin call or not?

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