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You are about to purchase OSTK, which is currently trading at $20 per share. You have $5,000 of
your own to invest. You borrow an additional $5,000 from your broker and invest $10,000 in the
stock. How far does the stock price have to fall for you to get a margin call if the maintenance
margin requirement is 35%?
Round your answer to 2 decimal places

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You are about to purchase OSTK which is currently trading a.pdf

  • 1. You are about to purchase OSTK, which is currently trading at $20 per share. You have $5,000 of your own to invest. You borrow an additional $5,000 from your broker and invest $10,000 in the stock. How far does the stock price have to fall for you to get a margin call if the maintenance margin requirement is 35%? Round your answer to 2 decimal places