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49. Using margin, a trader bought 100 shares of a $150 stock. The initial margin was 35 percent and the maintenance market was 25 percent.

49. Using margin, a trader bought 100 shares of a $150 stock. The initial margin was 35 percent and the maintenance market was 25 percent. If the price immediately drops to $125, the trader's margin account balance will be closest to:

a. $2,750.

b. $3,125.

c. $3,635.

d. $3,950.

e. $7,250.

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