What share price will you receive a margin call?

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Reference no: EM13153840

1. Suppose you take out a margin loan for $60,000. The rate you pay is an 8.6 percent effective rate. If you repay the loan in six months, how much interest will you pay?
2. The stock of Flop Industries is trading at $52. You feel the stock price will decline, so you short 450 shares at an initial margin of 70 percent. If the maintenance margin is 35 percent, at what share price will you receive a margin call?

Reference no: EM13153840

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