You invested in 800 shares of stock for $49.20 a share. The initial margin requirement is 65

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You invested in 800 shares of stock for $49.20 a share. The initial margin requirement is 65 percent and the maintenance margin is 35 percent.

What is the lowest the stock price can go before you receive a margin call?

What is the lowest the stock price can go before you receive a margin call if both the initial and maintenance margins are 100%?

What is the lowest the stock price can go before you receive a margin call if both the initial and maintenance margins are 0%?

How would your answers to the three questions above change if you invested in 8000 shares instead of 800 shares?

Related Book For answer-question

Investments Analysis and Management

ISBN: 978-1118363294

12th edition

Authors: Charles P. Jones

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Posted Date: Mar 19, 2024 04:22 PM

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You invested in 800 shares of stock for $49.20 a share. The initial margin requirement is 65

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To answer these questions well first calculate the amount of equity in the account and then determine the stock price at which the equity falls below ... View the full answer

Investments Analysis and Management

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