Assume You Have a Margin Account with a 50% Initial

question 60

Multiple Choice

Assume you have a margin account with a 50% initial margin.You purchase 100 shares of stock at $80 per share.The price increases to $100 per share.What is the net value of your investment (margin) now?

• A)$10,000
• B)$8,000
• C)$6,000
• D)$5,000
• E)$2,000

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Definitions:

Head Lice

Parasitic insects that live on the human scalp and feed on blood, causing itching and discomfort; commonly spread by close personal contact.

Pediculosis Capitis

A common infestation of the scalp by head lice, leading to itching and discomfort.

Lindane

A chemical insecticide used in prescription medications to treat lice and scabies, though its use is controversial due to potential toxicity.

Pediculosis

An infestation of lice on the human body, commonly affecting the head, body, or pubic area.