You Recently Purchased 200 Shares of Stock at a Cost

question 81

Multiple Choice

You recently purchased 200 shares of stock at a cost per share of $23.50. The initial margin requirement on this stock is 75% and the maintenance margin is 50%. The stock is currently valued at $25.00 a share. What is your current margin position? Ignore margin interest.

• A)73.01%
• B)73.83%
• C)74.40%
• D)76.50%
• E)76.79%

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Definitions:

Linear Programming

A mathematical modeling technique used for achieving the best outcome in a mathematical model whose requirements are represented by linear relationships.

Scarce Resources

Limited or insufficient resources that cannot fully meet the demand when needed.

Labour

The human effort, both physical and mental, used in the production process.

Competitive Bidding

A purchasing process in which suppliers submit bids to win the rights to fulfill a contract.