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De Trader opens a brokerage account, and purchases 390 shares of Internet Dreams at $56 per share. She borrows $4,050 from her broker to help
De Trader opens a brokerage account, and purchases 390 shares of Internet Dreams at $56 per share. She borrows $4,050 from her broker to help pay for the purchase. The interest rate on the loan is 5%. If the share price falls to $46 per share by the end of the year, what is the margin% in her account at that time? If the maintenance margin requirement is 34%, will she receive a margin call?
A. | 76.30%; Yes | |
B. | 58.81%; No | |
C. | 76.30%; No | |
D. | 81.46%; No | |
E. | 81.46%; Yes |
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