Question: Youve borrowed $16,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin

Youve borrowed $16,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $38 per share.

a. Will you receive a margin call? Yes No

b. How low can the price of Disney shares fall before you receive a margin call? (Round your answer to 2 decimal places.)

Margin call will be made at price $ or lower

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Question: Youve borrowed $16,000 on margin to buy shares in Disney, which is now selling at $40 per share. Your account starts at the initial margin

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