Exhibit 4.3 Use the Information Below for the Following Problem(S)

question 32

Multiple Choice

Exhibit 4.3
Use the Information Below for the Following Problem(S)
Kathy Smith has a margin account with a balance of $60,000. Initial margin requirements are 80 percent, and Jackson Industries is currently selling at $40 per share.
-Refer to Exhibit 4.3.If the maintenance margin is 25 percent,to what price can Jackson Industries fall before Kathy receives a margin call?

• A) $21.75
• B) $23.00
• C) $10.67
• D) $15.93
• E) None of the above

---

Definitions:

Liquid Sample

A portion of matter in the liquid state used for analysis or testing.

Mass

An assessment of the quantity of substance contained within an object, usually expressed in kilograms or grams.

Chemical

A substance produced by or used in a chemical process, including elements and compounds.

Density

A measure of how much mass is contained in a given unit volume of a substance.