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Inside traders opens brokerage account

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Question

Inside Traders opens a brokerage account and purchases 500 shares of Energy Infusion at $70 per share. They borrow $20,000 to pay for the stock. The interest rate on the loan is 7%. If the maintenance margin requirement is 25%, how low can the stock price go in one year before a margin call would be made?

Reference no: EM133306360

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