You’ve borrowed $20,000 on margin to buy shares in Ixnay, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days...


You’ve borrowed $20,000 on margin to buy shares in Ixnay, which is now selling at $40 per share. Your account starts at the initial margin requirement of 50%. The maintenance margin is

35%. Two days later, the stock price falls to $35 per share.
a. Will you receive a margin call?
b. How low can the price of Ixnay shares fall before you receive a margin call?



Jun 10, 2022
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