Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you’ve borrowed $60,000 on margin to buy shares

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

80.2K

Verified Solution

Question

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 =?

Answer & Explanation Solved by verified expert
3.6 Ratings (558 Votes)
NO OF SHARES    See Answer
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

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 =?

Other questions asked by students

Q

What is the pH of a 0.39 M solution of sodium oxalate, Na2C2O4? Acid ionization constants for...

Chemistry
Q

You transferred bacteria to a tube of broth the broth looks clear after incubation The...

Biology
Q

An extra circular DNA molecule isolated from bacteria that is used in Biotechnology to manipulate...

Biology
Q

are the beliefs and practices in your life that are most important to you O...

Biology
Q

1 point The planes dy 22 10 and 4 4x 5 23 are not parallel...

Geometry
Q

A company produces handmade shawis and afghans They spin the yam dye it and then...

Basic Math
Q

The formula d 0 2 trelating to the translational of motion where d represents distance...

Algebra
Q

Stop the hoteles en certive of 75 per room. What is the incentive...

Accounting
Q

On I January, 2021, King Lad acquired 75\% of the equity shates of Queen Lad...

Accounting
Q

When is the balance of the Unrecognized Net Gain or Loss account subject to amortization?...

Accounting
Q

Describe the differences between mass production, flexible production, and customer-driven production

Accounting
Q

Omari Company proauces and sells various types of beach toys and uses the perpetual inventory...

Accounting