Business
Business, 15.02.2022 15:00, hunterwilliams375

g If the broker's maintenance margin is 30%, what is the minimum value the stock price can take before you are issued a margin call? 20.1 Correct ✓ The price P that makes your margin equal to the maintenance margin is given by: Equity Value of stocks = Maintenance margin ⇔ N ⋅ P − L N ⋅ P = M M ⇔ P = L N − N ⋅ M M = 2,333 150 − 150 ⋅ 0.3 = 22.22 Attempt 3/20 for 10 pts. Part 4 What is your rate of return if the price falls to 28.89?

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