Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor purchases 250 shares of ABC stock at $313 per share. The investor deposits the intitial margin requirement of 45% and borrows the remaining

image text in transcribed

An investor purchases 250 shares of ABC stock at $313 per share. The investor deposits the intitial margin requirement of 45% and borrows the remaining amount at 6.25%. What is the maintenance margin excess or call if the maintenance margin requirement is 30% and the stock price drops to $303 per share? Multiple Choice \$7,298 Margin Excess $15,612 Margin Call \$9,048 Margin Excess $4,065 Margin Call

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Finance questions