Margin Call price is the amount borrowed divided by:
A)number of shares x (1 - initial margin proportion)
B)number of shares x (1 - maintenance margin proportion)
C)current value of the shares purchased x (1 - initial margin proportion)
D)current value of the shares purchased x (1 - maintenance margin proportion)

Question

Quizplus · Accepted Answer

The margin call price is calculated using the maintenance margin proportion, which is the minimum equity percentage required to avoid a margin call.

Margin Call Price Is the Amount Borrowed Divided By