Suppose an investor wants to buy 100 shares at a 100 per, Ask an Expert

Finance

Suppose an investor wants to buy 100 shares at a $100 per share, that is $10,000 worth of stock. She has $6,000 and finances her investment by borrowing the remaining 4,000 from a broker.

a) Find the initial percentage margin

b) How much is the percentage margin going to be, if the price declines to $70 per share?

c) How much is the percentage margin going to be, if the price declines to $39 per share?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92755688

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