The price of Walmart stock is currently $48.26 and you decide to buy 160 shares on margin. The inital margin is 60% and the broker's maintenance margin is 30%. The broker charges an monthly interest rate of 0.4% on the margin loan. Attempt 1/1 Part 1 After 8 months, the stock price has changed to $24.13. How much must you deposit to meet your margin call?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The price of Walmart stock is currently $48.26 and you decide to buy 160 shares on margin. The inital margin is
60% and the broker's maintenance margin is 30%. The broker charges an monthly interest rate of 0.4% on the
margin loan. Attempt 1/1 Part 1 After 8 months, the stock price has changed to $24.13. How much must you
deposit to meet your margin call?
Transcribed Image Text:The price of Walmart stock is currently $48.26 and you decide to buy 160 shares on margin. The inital margin is 60% and the broker's maintenance margin is 30%. The broker charges an monthly interest rate of 0.4% on the margin loan. Attempt 1/1 Part 1 After 8 months, the stock price has changed to $24.13. How much must you deposit to meet your margin call?
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