Price of ixnay shares fall before you receive margin call

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Reference no: EM131957483

You’ve borrowed $30,000 on margin to buy shares in Ixnay, which is now selling at $20 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 $18 per share.

a. Will you receive a margin call?

Yes

b. How low can the price of Ixnay shares fall before you receive a margin call? (Round your answer to 2 decimal places.)

Reference no: EM131957483

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