Sun Lee Purchased 1,500 Shares of Franklin Metals Stock for $16.80

question 77

Multiple Choice

Sun Lee purchased 1,500 shares of Franklin Metals stock for $16.80 a share. The stock was purchased with an initial margin of 65%. The maintenance margin is 30%. The stock is currently selling for $17.10 a share. What is the minimum dollar amount of equity that he must have in this stock today to avoid a margin call?

• A)$7,544
• B)$7,695
• C)$7,760
• D)$7,808
• E)$7,973

Analyze the factors that may cause GDP to overstate or understate economic well-being.

Differentiate between final goods and intermediate goods and their roles in GDP calculation.

Understand the concept of national income and its components.

Grasp the importance of adjusting GDP to obtain a more accurate indicator of economic well-being.

---

Definitions:

Relative Poverty

The inability to secure goods and services required to live a life equal to working-class standards.

Working-Class Standards

Social and economic norms and expectations that define the lifestyle, values, and attitudes of the working class, a socio-economic group primarily engaged in manual labor.

Soviet Union

A former federal socialist state in Eastern Europe and Northern Asia, existing from 1922 until 1991, comprised of 15 republics and governed under a Communist regime.

International Banking

Banking activities that involve cross-border transactions, including foreign exchange, international loans, and managing investments across different countries.