You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50%, and the maint
Posted: Fri Jul 01, 2022 7:42 am
You purchased 100 shares of IBM common stock on margin at $70per share. Assume the initial margin is 50%, and the maintenancemargin is 30%. Below what stock price level would you get a margincall? If the price goes up to $80 per share, do you make a profitor a loss? What is the magnitude of the profit or loss? Assume thestock pays no dividend; ignore interest on margin. (20 pints)