Assume an initial margin requirement of 50 percent and a maintenance margin of 30 percent

| January 31, 2017

Question
Assume an initial margin requirement of 50 percent and a maintenance margin of 30 percent. If you buy 100 shares of stock on margin at $60 per share and the price of the stock subsequently drops to $50.

i). What is the actual margin at $50?

ii) The price now rises to $55. Is the account restricted?

iii) If the price drops to $49, is there a margin call?

iv) Assume that the price declines to $45. What is the amount of margin call? At $35?

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