Question

I open a brokerage account and deposit $10000 into it. I buy 150 shares of AAPL at $100 per share. What is my margin right after I open the position? Assume the maintenance requirement for this position is 40% If the price of AAPL were to suddenly fall to $50 per share, would my broker issue a margin call? If so, how much more money would I have to deposit into my account so my margin is once 40%? If not, how much further must AAPL fall for my broker to issue a margin call?

Answer 1

1)	Margin immediately after opening the position =	$        10,000
2)	Balance in the account when the share price falls to $50 = 10000-(150-50)*100 =	$                  -
3)	Margin required = 100*50*40% =	$           2,000
4)	Amount to be deposited	$           2,000