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How low can intel price immediately fall

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Suppose that Intel currently is selling at $20 per share. You buy 1,000 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. The rate on the margin loan is 8% and the maintenance margin is 25%.

a. How low can Intel's price immediately fall before you get a margin call?

b. Assume that a year has passed. How low can Intel's price fall before you get a margin call?

Reference no: EM132779704

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