Aaron Purchased 200 Shares of a Technology Stock for $13

question 39

Multiple Choice

Aaron purchased 200 shares of a technology stock for $13.30 a share. The initial margin requirement on this stock is 75% and the maintenance margin is 50%. What is the lowest the stock price can go before he receives a margin call?

• A)$4.43
• B)$6.65
• C)$6.80
• D)$8.50
• E)$9.50

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity of that good or service that a supplier is willing and able to supply to the market.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Tax Burden

The impact of taxation on an individual or entity, often expressed as a percentage of income or revenue.

Government Imposes

The act of establishing regulations, taxes, or penalties by the government on businesses or citizens.