An investor pays $3100 towards $6600 of stock, and the difference is borrowed

Finance Dec 25, 2020

An investor pays $3100 towards $6600 of stock, and the difference is borrowed. What is the initial margin? Please report your answer in percent terms rounded to two decimal places. Your Answer: Answer units

Expert Solution

Loan = investment value - own investement

= 6600 - 3100

= 3500

Initial Margin = Loan / Investment value

= 3500 / 6600

= 53.03%

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