Price serves as a a. rationing device. b. transmitter of information. c. means of determining who gets what of the available lim
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A margin call would be issued if the stock price fell below $42.86.
Given initial margin 50% and maintenance margin 30%.
To find the stock price level to get a margin call.
When the value of assets in a brokerage account falls below a specific amount, known as the maintenance margin, the account holder is required to deposit extra cash or securities to fulfil the margin obligations. A margin call is a demand from a brokerage firm to boost the account's equity.
The formula to compute the margin call price is given below:
Margin call =
Therefore, the answer is $42.86.
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