You just bought 200 shares of a stock priced at $48 per share using 50% initial margin. The broker charges 4% annual interest rate on the margin loan and requires a 30% maintenance margin. One year later stock price dropped to 31 and you recieved margin call, to restore your margin to the initial margin level, how much would you need to deposit?
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You sell short 100 shares of company A which are currently selling at $32 per share. You post the 50% margin required on the short sale. If your broker requires a 30% maintenance margin, at what stock price will you get a margin call?
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