An investor purchased 200 shares of stock at $100 per share on 65% margin. Suppose the...

An investor purchased 200 shares of stock at $100 per share on 65% margin. Suppose the maintance margin is 40% at what price does the investor get a margin call?

Regarding the previous question, if the price declines to $70 per share whats the return to the investors equity? What if the stock price rises to $150 per share? ignore interest and transaction costs.

Expert Solution

jeff jeffy answered 7 months ago

An investor shorts 100 shares of a stock at $52 per share with initial margin of...

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You purchased 100 shares of common stock on margin for $150 per share. The initial margin...

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