Suppose you buy 200 shares at $50 a share on a 60% margin. The interest...

60.1K

Verified Solution

Question

Finance

Suppose you buy 200 shares at $50 a share on a 60% margin. The interest rate on the loan from your broker is 6% and the account has a 30% maintenance margin. In one year, you must pay interest and you get a margin call from your broker. At the time of the margin call, what was the price of the stock?

can you please show me how to get the answer? thank you.

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