You borrowed $25240 six months ago at 8.4% EAR to finance the purchase of $79431...
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You borrowed $25240 six months ago at 8.4% EAR to finance the purchase of $79431 of stock. Assuming your maintenance margin requirement is 10% and that interest is computed on the loan daily (but paid only when the position closes), how much can the stock price decline (%) from your purchase price before triggering a margin call? When giving your answer please write in whole numbers. That is, if the stock may fall 10.5% please write 10.5
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