A opens a margin account with BMO Investorline with a minimum required margin ratio of 30%. A invests in 100 shares of RAE Inc. at a price of $38.30 per share and an initial margin ratio of 60%. Calculate the price at which they will receive a margin call.

Answer rating: 100% (QA)

The initial margin ratio is 60 which means that for every 100 worth of shares the investor must ... View the full answer