margin at $35 per share. $2000 is borrowed from the broker to complete the purchase. Determine the actual margin:   a. When the purchase is made;

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A margin account is used to buy 200 shares on margin at $35 per share.

$2000 is borrowed from the broker to complete the purchase.

Determine the actual margin:

 

a. When the purchase is made;

b. If the price of the stock rises to $45 per share;

c. If the price of the stock falls to $30 per share.

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