Theresa Has a Margin Account with a 70% Initial Margin

question 84

Multiple Choice

Theresa has a margin account with a 70% initial margin requirement and a 35% maintenance margin. What is the maximum dollar amount of stock she can purchase if her cash balance in the account is $27,000?

• A)$9,450.00
• B)$18,900.00
• C)$38,571.43
• D)$58,833.33
• E)$77,142.86

---

Definitions:

S-curve

A term in art and design describing a curve shaped like the letter "S", often used to create a sense of dynamism and grace in compositions and poses.

Chiasmus

A rhetorical or literary figure in which words, grammatical constructions, or concepts are repeated in reverse order, in the same or a modified form.

Court Style

The artistic style or fashion prevalent within a royal court, often setting trends and standards for luxury, elegance, and cultural expression.

Rigid Frontality

A stylistic convention in art where figures are depicted straight-on, with no turn of the head or twist of the body, often used to convey authority or divinity.