You buy ₹8 lakh of an F&O Group I stock under MTF, paying 50% and funding the rest at 14% a year (simple interest). The applicable margin is . (a) What fall triggers a margin call if interest is ignored? (b) What fall triggers it after 90 days, including interest? (c) At day 90 the stock is 35% below your purchase price. Compute the cash shortfall and the value of stock you must sell to cure the call by selling.
M14 · Problem 23 ★★ Check
An MTF margin call
Answers
Working
Keep your working next to each problem, in markdown with maths: create a free account or sign in.
Solution
Try the problem first. Write down where you got stuck before opening it.