A B C D Stock Edita Telecom Egypt CIB Remco Price on April 7th 8 EGP 14.8 EGP 70.25 EGP 3.09 EGP Anticipated price on July 7th 11.35 EGP 11.25 EGP 55.75 EGP 4.13 EGP Dividends during period 2 EGP per share zero 3 EGP per share zero Number of shares invested 100 80 50 100 Assume that the investor chooses to hold stock A longer. The investor has a margin account, where the maintenance margin is 30%, initial margin is 45%. Suppose that the price of the stock then declines by 10%.a. Would the account then be restricted? Explain your answer and what that would mean.b. Does your account require a margin call if not, then at what price would a margin call be required? If YES move on to part Cc. If your account now requires margin call then how much cash would you need to add?

A B C D Stock Edita Telecom Egypt CIB Remco Price on April 7 th 8 EGP 14.8 EGP 70.25 EGP 3.09 EGP Anticipated price on July 7th 11.35 EGP 11.25 EGP 55.75 EGP 4.13 EGP Dividends during period 2 EGP per...

Assume that the investor chooses to hold stock A longer. The investor has a margin account, where the maintenance margin is 30%, initial margin is 45%. Suppose that the price of the stock then declines by 10%.

a. Would the account then be restricted? Explain your answer and what that would mean.

b. Does your account require a margin call if not, then at what price would a margin call be required? If YES move on to part C

c. If your account now requires margin call then how much cash would you need to add?

Jun 06, 2022