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21 September, 04:34

Marti purchased 100 shares of Better Foods stock on margin at a price of $49 a share. The initial margin requirement is 60 percent and the maintenance margin is 30 percent. What is the lowest the stock price can go before Marti receives a margin call?

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  1. 21 September, 04:36
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    100shares*$49*0.6 = 4900*0.6=$2940

    0.3 = (100*Price-2940) / 100*Price

    30Price=100Price-2940

    70Price=2940

    Price=$42
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