Justin Just Made a Margin Purchase of 100 Shares of DEF

question 90

Multiple Choice

Justin just made a margin purchase of 100 shares of DEF Corp. for $22.50 per share. The initial margin is 70%. The maintenance margin is 30%. How low can the price of each share of DEF be before Justin will have to add equity to his account?

• A) $4.73
• B) $5.25
• C) $6.75
• D) $9.64

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Definitions:

Left Coronary Artery

The artery that supplies blood to the left side of the heart, branching into the circumflex and left anterior descending arteries.

Interventricular Septum

The stout wall separating the ventricles of the heart beneath the aortic valve.

Myocardium

The muscular tissue of the heart, responsible for contracting and pumping blood through the body.

Fibrous Skeleton

A network of fibrous tissues forming the structural framework for heart valves and certain other internal organs.