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Franklin Investments buys $10,000 worth of ABC stock priced at $80 per share using 50% initial margin. The broker charges 7% on the margin loan
Franklin Investments buys $10,000 worth of ABC stock priced at $80 per share using 50% initial margin. The broker charges 7% on the margin loan and requires a 30% maintenance margin. In 1 year, the investor has interest payable and gets a margin call. If the broker requires Franklin Investments to top the margin back up to 50% (from 30% at the time of the margin call) then how much cash will need to be injected into the account? $1,178.75 O $2,292.50 O $1,528.75 1,695.25
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