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You have been closely watching AMAZON (NSE: AMZ) and believe that the share price should increase over the next two months. Assuming that your broker

You have been closely watching AMAZON (NSE: AMZ) and believe that the share price should increase over the next two months. Assuming that your broker charges a borrowing rate of 7% a year, requires an initial margin of 60%, maintenance margin of 30% and an initial assumed exposure of 1000 shares, calculate:

Time Bid Ask
Today 28,25 29,38
2 Months 31,30 32,55
  1. The price equal to or below which you will get a margin call is closest to:

A) US$21.66

B) US$19.39

C) US$16.79

D) US$13.35

E) US$22.41

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