You deposit $100,000 cash in a brokerage account and short sell $200,000 of stocks on margin. Later,
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Question:
a. 20 percent
b. 25 percent
C. 33 percent
d. 50 percent
9. Margin Calls (LO3, CFA4) You deposit $100,000 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing $100,000 from your broker, who requires a maintenance margin of 30 percent. Which of the following is the largest value for your stock holdings for which you will still receive a margin call?
a. $200,000
b. $160,000
c. $140,000
d. $120,000
Related Book For
Fundamentals of Financial Management
ISBN: 978-1337395250
15th edition
Authors: Eugene F. Brigham, Joel F. Houston
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