Exhibit 4.2 Use the Information Below for the Following Problem(S)

question 68

Multiple Choice

Exhibit 4.2
Use the Information Below for the Following Problem(S)
Heidi Talbott has a margin account with a balance of $50,000. The initial margin deposit is 50 percent, and RC Industries is currently selling at $50 per share.
-Refer to Exhibit 4.2.What is Heidi's profit if RC's price rises to $80?

• A) $55,000
• B) $50,000
• C) $60,000
• D) $68,270
• E) $28,570

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Definitions:

Lot Number

A lot number is a identification number assigned to a particular quantity or lot of material from a single manufacturer, used for quality control and tracking purposes.

Administered

Managing or giving out, often used in the context of medications or treatments being given to patients or policies being applied in organizations.

Opportunity

A set of circumstances that makes it possible to achieve a goal or do something beneficial.

Abbreviation

A shortened form of a word or phrase used to save space or avoid repetition.