You borrowed $38176 six months ago at 8.7% EAR to finance the purchase of $84569 of stock. Assuming your maintenance margin requirement is 10% and that interest is computed on the loan daily (but paid only when the position closes), how much can the stock price decline (%) from your purchase price before triggering a margin call?

Answer rating: 100% (QA)

Calculating the Maximum Allowed Decline before Margin Call Heres how to calculate the ... View the full answer