What is the remaining margin in the account

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Reference no: EM131974204

Rachel opens a margin account and purchases 400 shares of Ross Inc. at $40 per share. The initial margin requirement is 50%. The share price falls to $25 per share by the end of the year.

1) What is the remaining margin in the account?

2) If the maintenance margin requirement is 30%, will she receive a margin call?

3) How much will she have to put up to get back to 50% when her broker calls?

4) If she does not have any more cash, how many shares she has to sell to pay back the broker?

5) If price increases to $50 per share by the end of the year instead, how many more shares she can buy by borrowing more from her broker?

Reference no: EM131974204

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