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Given the maintenance margin is 25%. Assume an investor purchases $12,000 worth of stock at $200 per share. 50% is on margin. SHOW WORK.

Calculate the price of the stock in order to receive a margin call. _________

Who sets initial margin limits?   ______________

Who sets maintenance margin requirements? _____________

True or False. Margin Funds borrowed from the broker are at the “call money rate” plus a service charge.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92395562

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