You have $5000 of your own to invest; and borrow an additional $5000 from your...

60.1K

Verified Solution

Question

Accounting

image

You have $5000 of your own to invest; and borrow an additional $5000 from your broker. You invest the summed amount in Stock A at $50 per share. Assume the stock pays no dividends. How far does the stock price have to fall for you to get a margin call if the maintenance margin is 30%? Assume the price fall happens immediately. O 35.71 42.53 29.86 O 32.66

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!
Become a Member

Other questions asked by students