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An investor purchased 60 shares of APT at $78 on margin. The initial margin requirement is 35%, and the maintenance margin requirement is 25%. Any
An investor purchased 60 shares of APT at $78 on margin. The initial margin requirement is 35%, and the maintenance margin requirement is 25%. Any amount borrowed incurs an interest rate of 5% p.a. What is the amount the investor can borrow and what is the price APT can fall to at the end of year before margin call is triggered?
Select one:
A. $3 042, $71.90
B. $3 510, $71.90
C. $3 042, $70.98
D. $3 510, $70.98
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