Assume You Have a Margin Account with a 50% Initial

question 78

Multiple Choice

Assume you have a margin account with a 50% initial margin. You purchase 100 shares of Microsoft at $150 per share. The price increases to $175 per share. What is the net value of your investment (margin) now?

• A) $17,500
• B) $15,000
• C) $ 7,500
• D) $ 3,750
• E) none of the above