You want to buy 100 shares of a stock currently trading at $50 per share....
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Finance
You want to buy 100 shares of a stock currently trading at $50 per share. Your brokerage firm allows margin sales with a 50% initial margin and a maintenance margin of 25%. a) What is the initial margin that must be posted with your broker? b) How low can the stock price go before you must post additional funds? c) If you close your position at a price of $53.50, what is your return
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