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QUESTION
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%.
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?
