Youve borrowed 12000 on margin to buy shares in disney, Ask an Expert

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You've borrowed $12,000 on margin to buy shares in Disney, which is now selling at $20 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $14 per share.

a. Will you receive a margin call? No or Yes

b. How low can the price of Disney shares fall before you receive a margin call? (Round your answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

Margin call will be made at price $ ________ or lower

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92885220

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