You purchased 100 shares of XON common stock on margin at $60 per share.Assume the initial margin is 50% and the maintenance margin is 30%.Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.
A) $42.86
B) $50.75
C) $49.67
D) $80.34
E) none of the above
Correct Answer:
Verified
Q42: Assume you sold short 100 shares of
Q45: You want to purchase IBM stock at
Q46: You purchased 100 shares of common stock
Q49: You sell short 100 shares of Loser
Q50: Assume you sell short 100 shares of
Q51: In a typical underwriting arrangement, the investment-banking
Q53: You purchased 100 shares of common stock
Q54: You purchased 1,000 shares of common stock
Q56: You purchased 100 shares of common stock
Q57: When a firm markets new securities, a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents