You borrowed $26614 six months ago at 10.7% EAR to finance the purchase of $72455 of stock. Assuming your maintenance m

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answerhappygod
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You borrowed $26614 six months ago at 10.7% EAR to finance the purchase of $72455 of stock. Assuming your maintenance m

Post by answerhappygod »

You borrowed $26614 six months ago at 10.7% EAR to finance the
purchase of $72455 of stock. Assuming your maintenance margin
requirement is 10% and that interest is computed on the loan daily
(but paid only when the position closes), how much can the stock
price decline (%) from your purchase price before triggering a
margin call?
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