An investor establishes a margin account with an investment broker and then purchases 300 shares of ABC Company at $11.00 per share, making the minimum margin deposit. Two weeks later, the price of ABC shares rises to $15.00 per share. Ignoring any other costs and considerations, how will this price increase affect the margin deposit required from the investor? a) There will be no effect on the amount of the margin deposit required b) A margin call will be issued. c) The investor will be required to close his/her position. d) The investor may withdraw funds from the account. An investor's AMAZON shares have appreciated quite significantly over the past few months. She is planning to take a three-month European vacation but wants to protect her paper profit on the AMAZON shares. What type of order would you recommend she place on the AMAZON shares while she is on vacation? a) Stop loss order Ob) Limit order Oc) Stop buy order. d) Any part order. Which is FALSE concerning Cash Accounts held at a brokerage firm? At the time of a purchase the buyer must have sufficient funds in his account to make full payment They are intended for investors who wish to buy securities and to pay forthem with cash At the time of a sale (or at least before settlement date) the seller must have the security being sold, in his account O Cash accounts are the most flexible type of account becuase they can be used for both cash trades and margin trades. Jose believes that the market is going to continue to fall for another 6 months. Which investment is she likely to make? a) She will buy a 6 month call b) She will write a 6 month call c) None of the other answers will allow her to profit if the market falls. d) She will write a 6 month put. Question 20 (1 point) Investors have the following information concerning the warrants for the shares of Company B Market Price of Shares Market Price of Warrants Exercise Price of Warrants Co B $45 $0.75 $50.00 What is the intrinsic value of the Company B warrants? a) $5.00 b) $0.00 Oc)-$5.00 d) $0.75