Chartered Financial Analyst Level 1
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An analyst gathers the following information about a stock purchased on margin:
Purchase price of stock €50 Leverage ratio 2.5 Price below which first margin call received €40
The maintenance margin requirement is:
An analyst gathers the following information about a stock purchased on margin:
| Purchase price of stock | €50 |
|---|---|
| Leverage ratio | 2.5 |
| Price below which first margin call received | €40 |
The maintenance margin requirement is:
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A
20%.
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