Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Jennifer has a margin account. She logged into her online account and her margin account (REAL TIME) on July 2, 2020 showed a credit balance

Jennifer has a margin account. She logged into her online account and her margin account (REAL TIME) on July 2, 2020 showed a credit balance of $1,500. She decided to purchase 100 shares @ $30.40 of TD Bank (TSX:TD) a blue chip company that offers 70% loan value. The total cost of the shares is $3,040 (ignore commissions). What would show on her margin statement after the transaction? (assuming no new trades and no interest has been paid or charged)? A. Excess margin $1540 B. Excess margin $588 C. Under margin $588 D. Under margin $1540

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Ontology And Function Of Money The Philosophical Fundamentals Of Monetary Institutions

Authors: Leonidas Zelmanovitz

1st Edition

0739195115,0739195123

More Books

Students also viewed these Finance questions