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Marti purchased 100 shares of Better Foods stock on margin at a price of $49 a share. The initial margin requirement is 60 percent and the maintenance margin is 30 percent. What is the lowest the stock
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Marti purchased 100 shares of Better Foods stock on margin at a price of $49 a share. The initial margin requirement is 60 percent and the maintenance margin is 30 percent. What is the lowest the stock price can go before Marti receives a margin call?

User Jasper Helmich
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1 Answer

2 votes

Answer:

Step-by-step explanation:

100shares*$49*0.6= 4900*0.6=$2940

0.3=(100*Price-2940)/100*Price

30Price=100Price-2940

70Price=2940

Price=$42

User Jonsmoke
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