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jorgereyes01
01.08.2020 •
Business
You purchased 200 shares of ABC common stock on margin at $50 per share. Assume the initial margin is 50% and the maintenance margin is 30%. You will get a margin call if the stock drops below what price? (Assume the stock pays no dividends, and ignore interest on the margin loan.)
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Ответ:
Margin call will be obtained if the stock price drops below $35.71
Explanation:
Here in this question, we start by calculating the maintenance margin
Mathematically;
Maintenance margin = Equity/market value
From the question, maintenance margin= 30%
= 30/100 = 0.3
Let the unknown price be P.
Thus, the market value of the 200 shares at price P is 200p
Hence;
0.3 = (200 * p - purchased stock value * initial margin)/200p
0.3 * 200p = 200p - 200(0.5 * 50)/200p
0.3 * 200p = 200p - 5000
60p = 200p -5000
140p = 5000
p = 5000/140
p = $35.71
Ответ:
a parternership is owned by two or more individuals and a sole prioretorship is when only one individual operates the business.
Explanation: