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You’ve borrowed $60,000 on margin to buy shares in Ixnay, which is now selling at $44.0...

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Finance

You’ve borrowed $60,000 on margin to buy shares in Ixnay, whichis now selling at $44.0 per share. Your account starts at theinitial margin requirement of 50%. The maintenance margin is 35%.Two days later, the stock price changes to $55 per share.

a. Will you receive a margin call? Yes? No?

b. At what price will you receive a margincall? Stock price =?

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Transcribed Image Text

You’ve borrowed $60,000 on margin to buy shares in Ixnay, whichis now selling at $44.0 per share. Your account starts at theinitial margin requirement of 50%. The maintenance margin is 35%.Two days later, the stock price changes to $55 per share.a. Will you receive a margin call? Yes? No?b. At what price will you receive a margincall? Stock price =?

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