Suppose you purchase some shares of MLP common stock on margin at $50 per share. The initial margin is 60% and the maintenance margin is 30%. (assume the stock pays no dividends and ignore interest on the margin loan) answwer with details plz
a) assume you borrowed $ 3000 from the broker for the purchase with 60% margin. How many shares have you bought ?
a)150 b)100 c)60 d)120
b) what is the maximum price to trigger a margin call?
a)30 b)25 c)46.15 d)28.75