Suppose you purchase some shares of mlp common stock on, Ask an Expert

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Suppose you purchase some shares of MLP common stock on margin at $50 per share. The initial margin is 60% and the maintenance margin is 30%.( assume the stock pays no dividends and ignore interest on the margin loan)

a) assume you borrowed $ 3000 from the broker for the purchase with 60% margin. How many shares have you bought ?

b) what is the maximum price to trigger a margin call ?

Please write with the details.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92676650

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