QUESTION 1
1.1
Equity position = 350 x R75 = R26 250
The initial margin = 0.65 x R26 250 = R17 062.50
Margin call = Po x [ 1 – initial margin %) / (1 – maintenance margin %)]
= R75 x [(1 -0.65)/(1-0.3)]
= R75 x (0.5)
= R37.50
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