Suppose that Xtel currently is selling at $35 per share. You buy 800 shares using $15,000...

Suppose that Xtel currently is selling at $35 per share. You buy 800 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8%. If the maintenance margin is 30%, how low can Xtels price be before you get a margin call?

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AS NOTHING IS MENTIONED REGARDING WHAT IS THE TIME PERIOD, WHEN MARGIN CALL CAN OCCUR, I HAVE EXPLAINED WITH 2 CASES : IMMEDIATELY OR AFTER A YEAR

jeff jeffy answered 4 weeks ago

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