Youve borrowed 18000 on margin to buy shares in disney, Ask an Expert

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You've borrowed $18,000 on margin to buy shares in Disney, which is now selling at $40 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 $35 per share.

How low can the price of Disney shares fall before you receive a margin call?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92885054

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