Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Transcribed Image Text:An investor opens a margin
account with an initial deposit of
$5500. He then purchases 870
shares of a stock at $44. His
margin account has a
maintenance margin requirement
of 30%. Ignoring commissions
and interest, IF the price changed
to 27
WHAT IS YOUR NEW EQUITY
The correct answer is
AT WHAT PRICE YOU WILL
GET A MARGIN CALL PRICE?
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