Account starts at the initial margin requirement

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Reference no: EM131021573

You’ve borrowed $20,000 on margin to buy shares in Disney, which is now selling at $50 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price falls to $48 per share. a. Will you receive a margin call? Yes No b. How low can the price of Disney shares fall before you receive a margin call? (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Reference no: EM131021573

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