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shares of Globe Inc. Strike price is P300 per share. There is an initial margin of 50%. The maintenance margin is 80% of initial margin. On a date before the agreed date, the share price declined to P260 resulting to a margin call. How much is the total deposit to be return on the agreed

shares of Globe Inc. Strike price is P300 per share. There is an initial margin of 50%. The maintenance margin is 80% of initial margin. On a date before the agreed date, the share price declined to P260 resulting to a margin call. How much is the total deposit to be return on the agreed

Essentials Of Investments
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
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5,000 shares of Globe Inc. Strike price is P300 per share. There is an initial margin of 50%. The maintenance margin is 80% of initial margin. On a date before the agreed date, the share price declined to P260 resulting to a margin call. How much is the total deposit to be return on the agreed date?

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