Answer:
$35.71
Explanation:
The computation of the stock drop price is shown below:
Maintenance margin = Number of shares purchased × price - loan amount ÷ Number of shares purchased × price
30% = 200 shares × price - $5,000 ÷ 200 shares × price
30% × 200 shares × price = 200 shares × price - $5,000
60 × price = 200 shares × price - $5,000
After solving this, the price would be $35.71
And, the loan amount is equal to
= Number of common stock shares purchased × per share value × initial margin
= 200 shares × $50 × 50%
= $5,000
