Exhibit 4.2 Use the Information Below for the Following Problem(S)

question 62

Multiple Choice

Exhibit 4.2
Use the Information Below for the Following Problem(S)
Heidi Talbott has a margin account with a balance of $50,000. The initial margin deposit is 50 percent, and RC Industries is currently selling at $50 per share.
-Refer to Exhibit 4.2.If the maintenance margin is 25 percent,to what price can RC Industries stock price fall before Heidi receives a margin call?

• A) $21.75
• B) $23.33
• C) $32.00
• D) $33.33
• E) None of the above

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