Maximum Allowable Margin for Lauren
Assuming the initial margin requirements is 40%, and The Gentry shoe
corporation is selling at $25.00 per share:
How many shares can Lauren purchase using the maximum
allowable Margin?
What are Lauren’s profit (loss) and the return on investment
if the price of Gentry’s stock rises to $45 per share and at $20.00 per share?
If the maintenance margin is 30%, to what price can Gentry
Shoe fall before Lauren will receive a margin call?





