Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you borrowed $25240 six months ago at 8.4% ear to

You borrowed $25240 six months ago at 8.4% EAR to finance the purchase of $79431...

60.1K

Verified Solution

Question

Finance

image

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

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Solve the problem. A one-sided confidence interval for p can be written as p <  + E or...

Statistics
Q

Python: Solve following problems using Linked List Data Structure 2. Create a Queue class. In the queue...

Programming
Q

Differentiate between oligodendrocytes and Schwann Cells What is the role of calcium in neurotransmitter release?

Medical Sciences
Q

Research Scenario: A social psychologist is studying the differences in the number of Facebook® friends between identical...

Basic Math
Q

The following financial statements and additional information are reported. IKIBAN INC. Comparative Balance Sheets June 30, 2019 and 2018 2019 2018 Assets Cash $ 85,100 $ 48,000 Accounts...

Accounting
Q

Three long wires each carrying current i are placed parallel to each other The distance...

Physics
Q

A stone weighs 750 N in air and has an apparent weight of 250 N...

Physics
Q

Determine the inverse of y f x 2 ln x 6 A f y 2...

Basic Math
Q

Suppose ABC is a right triangle with sides of A lengths a b and c...

Basic Math
Q

A student plans to take 3 courses next term. If he selects them randomly from...

Basic Math
Q

In the case of C corporations, shareholders don't pay income taxes on dividend covers gross...

Accounting
Q

The Statement of Cash Flows Using Excel to prepare the statement of cash flows, indirect...

Accounting