Part 1 Barbara Simmons purchases 100 shares of Home Depot stock for $189.29 per share, using as little of her own money as she could. Her broker has a 53% initial margin requirement and a 38% maintenance margin requirement. If the price of Home Depot stock falls to $140.69 per share, what does Barbara need to do to get the account back to the maintenance margin requirement?
Part 1 Barbara Simmons purchases 100 shares of Home Depot stock for $189.29 per share, using as little of her own money as she could. Her broker has a 53% initial margin requirement and a 38% maintenance margin requirement. If the price of Home Depot stock falls to $140.69 per share, what does Barbara need to do to get the account back to the maintenance margin requirement?
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
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Part 1
Barbara Simmons purchases 100 shares of Home Depot stock for
$189.29
per share, using as little of her own money as she could. Her broker has a
53%
initial margin requirement and a
38%
maintenance margin requirement. If the price of Home Depot stock falls to
$140.69
per share, what does Barbara need to do to get the account back to the maintenance margin requirement?Expert Solution
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