What share price would trigger a margin call for investor

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Question 1: On June 1 st apple stock is selling for $220 per share. Investor A purchase 1000 shares with an initial margin of 50%. Investor b executes a short sale of 1000 shares, also with an initial margin of 50% . The maintanance for both investors is 30-%. On the following December 1, apple stock is selling for 184 per share. Apple has not pain a dividend during this period.

will investor A receive a margin call? Explain why or why not. If investor A closes his position at this time, what is his holding period return roe on this trade. Ignore commission and interest expense.

what share price would trigger a margin call for investor B? Ignore commission and interest

Reference no: EM133377531

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