You purchased 100 shares of common stock on margin at $45 per share. Assume the initial margin is 50% and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $30

0.25

Step by step Explanation:

Purchases 100 shares of common stock on margin at $45

Initial margin is 50%

Stock price$30

100 shares * $45/share * 0.5 = $4,500

$4,500 * 0.5 = $2,250 (loan amount)

Therefore

X = [100 ($30) - $2,250]

=3,000-2,250=750

100 ($30) = $3,000

750/3,000 = 0.25

X = 0.25