AXE is currently selling for $100 per share

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Question # 00600846 Posted By: katetutor Updated on: 10/09/2017 03:44 AM Due on: 10/09/2017

Subject Finance Topic Finance Tutorials:

Question

1. AXE is currently selling for $100 per share. The security is eligible for 50% margin. 100 shares are bought with an initial deposit of 60%.

a. What is the initial value of the loan at the time AXE is purchased

b. At what price will the investor receive a margin call?

c. If the price rises to $110, what is the most the investor can withdraw from the account?

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score 3 · Accepted Answer · 10/09/2017 03:45 AM

Solution: AXE is currently selling for $100 per share

Tutorial # 00599210 Posted By: katetutor Posted on: 10/09/2017 03:45 AM

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