AN INVESTOR OPENS A MARGIN ACCOUNT WITH AN INITIAL DEPOSIT OF $5,0...

65. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014 65. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014

65. An investor opens a margin account with an initial deposit of $5,000. He then purchases 300 shares

of a stock at $30 each on margin, and his account requires a maintenance margin of 30%. Ignoring

commissions and interest, the price at which the investor will receive a margin call is closest to:

A. $19.05.

B. $23.08.

C. $23.81

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