Question
De Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $26 per share. She borrows $3,200 from her broker to help
De Trader opens a brokerage account and purchases 400 shares of Internet Dreams at $26 per share. She borrows $3,200 from her broker to help pay for the purchase. The interest rate on the loan is 10%. If the share price falls to $16 per share by the end of the year, what is the remaining margin (or equity) in her account?
(Assignment 2 and exam review)
- 2,880
- 6,400
- 7,200
- 3,520
- 10,400
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Risk Management And Financial Institution
Authors: John C. Hull
2nd Edition
0136102956, 9780136102953
