Question
Paolo purchased 1,000 shares of Blackberry common stock at a price of $48 per share. The investment is option-eligible. He provided the minimum margin required
Paolo purchased 1,000 shares of Blackberry common stock at a price of $48 per share. The investment is "option-eligible". He provided the minimum margin required and borrowed the remainder of the funds. If Blackberry shares increased in price to $50, Paolo could ...
A) Withdraw a maximum of $1,000 from his account, but he would be required to pay interest on that extra $1,000 in addition to the original $24,000 he borrowed
B) Withdraw a maximum of $1,000 from his account, but he would not be required to pay interest on that extra $1,000 in addition to the original $24,000 he borrowed
C) Withdraw a maximum of $1,400 from his account, but he would be required to pay interest on that extra $1,400 in addition to the original $33,600 he borrowed
D) Withdraw a maximum of $1,400 from his account, but he would not be required to pay interest on that extra $1,400 in addition to the original $33,600 he borrowed
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