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Nancy purchased $80,000 worth of common stock by borrowing $32,000 from her broker. She paid the rest to satisfy the initial margin requirement. The initial
Nancy purchased $80,000 worth of common stock by borrowing $32,000 from her broker. She paid the rest to satisfy the initial margin requirement. The initial stock price is $160 per share. The maintenance margin requirement is 45%. The broker charges 8% on the margin loan. If the stock price changes from $160 to $120 one year later, what is the remaining margin (percentage margin) in the account?
A. | 46.7% | |
B. | 44.3% | |
C. | 42.4% | |
D. | 80.0% |
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