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You’ve borrowed $60,000 on margin to buy shares in Ixnay, which is now selling at $44.0...

You’ve borrowed $60,000 on margin to buy shares in Ixnay, which is now selling at $44.0 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price changes to $55 per share.

a. Will you receive a margin call? Yes? No?

b. At what price will you receive a margin call? Stock price =?

Solutions

Expert Solution

NO OF SHARES ARE IN FRACTION. TAKEN FULL FIGURE AS NOTHING IS MENTIONED.

jeff jeffy answered 11 months ago
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