Homework Answers
Investor's Equity in each share = $45,000 / 1,400
= $32.1429
Initial Margin % = $32.1429 / 62 * 100
= 51.843%
Original price (1 - Initial margin) = Price for margin call (1 - maintenance margin)
$62 * (1 - 0.51843) = Price for Margin Call * (1 - 0.30)
$29.857 = Price for Margin Call * 0.70
Price for Margin Call = $42.65
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