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QUESTION 5 1. Mark short sold 500 shares of stock at $12.50 a share. The initial margin is 80% and the maintenance margin is 50%6.

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QUESTION 5 1. Mark short sold 500 shares of stock at $12.50 a share. The initial margin is 80% and the maintenance margin is 50%6. The stock is currently selling for $9.80 a share. What is Matt's account equity at this time? Ignore margin interest. 1. 56,350 02.$4,800 3. $6,250 4.54,900 5.$5,000 1 points QUESTION 6 1. You believe that Thorn Enterprises stock is going to fall, so you have decided to short sell 1,000 shares at a price of $32. Assuming the initial margin requirement is 50 percent. If the maintenance margin is 30 percent, at what price would a margin call result? 1. $36.92 2.$63.92 3,586.92 C4.526.92 5.$16.92 1 points QUESTION 7 1. The minimum equity that must be maintained at all times in a margin account is called the 1.call requirement. 2. initial equity position. 3.margin call C4. maintenance margin. CS. Initial margin. 0.5 points QUESTION 8 1. All purchased 400 shares of Microsoft stock which he has pledged to his broker as collateral for the loan in his margin account. This process of pledging securities is called 1. Hypothecation C 2.leveraging 3. maintaining the margin. 4.margin calling 5. street securitization

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