How much of a margin call must rodomir meet

Reference no: EM133559759

Question:Rodomir bought 5295 shares at $41.94 and has an initial and maintenance margin of 30% on his account. When he opened the account, 3 months ago, he just met the minimal margin requirements. The cost of the loan for the margin trade was 3.3% EAR. If any margin calls happen, he must respect the new loan balance. Given that the stock has just attained the price of $27.51, how much of a margin call (in dollars/$) must Rodomir meet?

If there is no margin call, simply put the value zero.

Reference no: EM133559759

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