Question
Alex purchased 100 shares of ABC in his margin account that required a 50% initial margin. The cash that he deposited for this purchase was
Alex purchased 100 shares of ABC in his margin account that required a 50% initial margin. The cash that he deposited for this purchase was $10,000 and this is the only investment in his account. What is the equity in his account if the price of the stock were to increase by 10% the day after his purchase?
| a. | $11,000 | |
| b. | $12,000 | |
| c. | $21,000 | |
| d. | $22,000 |
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Essentials Of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
13th Edition
0324258755, 9780324258752
