Question
Assume that you will buy stock on margin (i.e.; stock margin trading). Assume that Texas Instruments Corp stock is currently selling for $50 per share.
Assume that you will buy stock on margin (i.e.; stock margin trading). Assume that Texas Instruments Corp stock is currently selling for $50 per share. Assume that you will purchase 500 shares on July 29, 2002 at 11:00 AM. You have $15,000 of your own to invest and you will borrow an additional $10,000 from your broker at an interest rate of 10% per year. Assume that the Maintenance Margin is 40%.
15) What is the Percentage Margin?
- 100%
- 60%
- 40%
- 66.66%
- None of the above (What is the correct answer)
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Applied Conic Finance
Authors: Dilip Madan, Wim Schoutens
1st Edition
1107151694, 978-1107151697
