You invest $10,000 in a long position in a stock priced at $44 per share. Intial margin is 70% and maintenance margin is 30%. If price drops to $33, have you triggered a margin call? What is your margin call at $33?

You invest $10,000 in a long position in a stock priced at $44 per share. Intial margin is 70% and maintenance margin is 30%. If price drops to $33, have you triggered a margin call? What is your margin call at $33?

Name: You invest $10,000 in a long position in a stock priced at $44 per sha
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Description: You invest $10,000 in a long position in a stock priced at $44 per share. Intial margin is 70% and maintenance margin is 30%. If price drops to $33, have you triggered a margin call? What is your margin call at $33?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 3P

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