An investor buys 100 shares of Walmart at $45 per share on margin with an initial margin of 70 percent and a maintenance margin of 25% percent. In two months, the stock goes to $56.
-Below what price will a margin call occur? $$\begin{array} { l l }
\text { a. } & \$ 13.50 \
\text { b. } & \$ 54.00 \
\text { c. } & \$ 42.00 \
\text { d. } & \$ 18.00
\end{array} \quad \text { Solution } = \frac { 1350 } { 100 ( 1 - .25 ) } = \$ 18$$

Question

An investor buys 100 shares of Walmart at $45 per share on margin with an initial margin of 70 percent and a maintenance margin of 25% percent.    In two months, the stock goes to $56.
-Below what price will a margin call occur? $$\begin{array} { l l } 
\text { a. } & \$ 13.50 \
\text { b. } & \$ 54.00 \
\text { c. } & \$ 42.00 \
\text { d. } & \$ 18.00
\end{array} \quad \text { Solution } = \frac { 1350 } { 100 ( 1 - .25 ) } = \$ 18$$

Quizplus · Accepted Answer

The Answer of An investor buys 100 shares of Walmart at $45 per share on margin with an initial margin of 70 percent and a maintenance margin of 25% percent.    In two months, the stock goes to $56.
-Below what price will a margin call occur? $$\begin{array} { l l } 
\text { a. } & \$ 13.50 \
\text { b. } & \$ 54.00 \
\text { c. } & \$ 42.00 \
\text { d. } & \$ 18.00
\end{array} \quad \text { Solution } = \frac { 1350 } { 100 ( 1 - .25 ) } = \$ 18$$

An Investor Buys 100 Shares of Walmart at $45 Per