ABC Securities Company applies an initial margin of 60%, a maintenance margin of 35% for shares of XYZ, a transaction fee of 0.2%, an interest rate is 0.06%/day. The current market price of XYZ stock is VND 40,000. An investor participates in a margin transaction of XYZ stock with the amount of VND 1.2 billion. Requirement: a. How low can XYZ’s price fall before you get a margin call? b. Assume an investor borrows 30 days and the stock price of XYZ at that time is VND44,000. How many VND does the ABC company get from the above transaction. c. With the above assumption, what is profit and rate of return of the investor?

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