Will her broker put in a margin call

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Reference no: EM131210048

Jessie bought a share of stock for $100. She borrowed $50 from her broker.

There is a 25 percent maintenance margin requirement established by the brokerage firm she does business with. The price of the stock falls to $80.

Will her broker put in a margin call to her, asking her to put up more funds?

If so, how much more? What if the price falls to $50? In each case, if so, how much more?

Reference no: EM131210048

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