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

Question

70.  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. $23.08. B. $19.05. C. $23.81.

Answer

70.  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. $23.08. B. $19.05. C. $23.81.

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

70. 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. $23.08.

B. $19.05.

C. $23.81.

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