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De Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $56...

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Question

Accounting

De Trader opens a brokerage account and purchases 100 shares of Internet Dreams at $56 per share. She borrows $3,500 from her broker to help pay for the purchase. The interest rate on the loan is 9%.
11.11
points
eBook
References
Required:
a. What is the margin in De's account when she first purchases the stock?
Margin $2,100
b. If the share price falls to $46 per share by the end of the year, what is the remaining margin in her account?
Remaining margin
c. If the maintenance margin requirement is 30%, will she receive a margin call
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