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An investor purchased 200 shares of stock at $100 per share on 65% margin. Suppose the maintance...

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Finance

Aninvestor purchased 200 shares of stock at $100 per share on 65%margin. Suppose the maintance margin is 40% at what price does theinvestor get a margin call?

Regarding the previous question, if the price declines to $70 pershare whats the return to the investors equity? What if the stockprice rises to $150 per share? ignore interest and transactioncosts.

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Aninvestor purchased 200 shares of stock at $100 per share on 65%margin. Suppose the maintance margin is 40% at what price does theinvestor get a margin call?Regarding the previous question, if the price declines to $70 pershare whats the return to the investors equity? What if the stockprice rises to $150 per share? ignore interest and transactioncosts.

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