What is your margin loan and initial margin

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Reference no: EM131026254

You purchase 300 shares of security B-Flat on margin at a price of $50. Your broker requires a deposit $9,000. The margin call rate is 5%.

a. what is your margin loan?

b. What is the initial margin?

c. If the maintenance margin is 30%, at what price will you receive a margin call?

d. if the price rises to $55 one year later, what is the return in your margin account?

e. how much greater is this than if you had used a cash account?

Reference no: EM131026254

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