Rodomir bought 1002 shares at $34.86 and has an initial and maintenance margin of 30%...
80.2K
Verified Solution
Link Copied!
Question
Finance
Rodomir bought 1002 shares at $34.86 and has an initial and maintenance margin of 30% on his account. When he opened the account, 12 months ago, he just met the minimal margin requirements. The cost of the loan for the margin trade was 4.5% EAR. If any margin calls happen, he must respect the new loan balance. Given that the stock has just attained the price of $61.82, how much of a margin call (in dollars/\$) must Rodomir meet? If there is no margin call, simply put the value zero
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
