Question
Diego has borrowed $197,450 on margin to buy Apple, Inc. (AAPL), which is now trading at $133.75 per share. With this transaction, his initial percentage
Diego has borrowed $197,450 on margin to buy Apple, Inc. (AAPL), which is now trading at $133.75 per share. With this transaction, his initial percentage margin is 37%. His broker, Tyler, states, and Diego agrees, that the maintenance margin is 20%. Based on the given information, what is the equity value in account?
A.
$200,078.45.
B.
$174.850.67.
C.
$139.134.09.
D.
$115,962.70.
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
978-1305108042
