Suppose that off-star currently is selling at 60 per share, Ask an Expert

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Suppose that Off-Star currently is selling at $60 per share. You buy 100 shares, borrowing the maximum amount of the purchase price from your broker. If the initial margin is 50% and the maintenance margin is 25%, how low can Off-Star's price fall before you get a margin call? Assume the price fall happens immediately.

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Financial Management, Finance

Category:- Financial Management
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