You Purchased 1000 Shares of CSCO Common Stock on Margin

question 44

Multiple Choice

You purchased 1000 shares of CSCO common stock on margin at $19 per share. Assume the initial margin is 50%, and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.

• A) $12.86
• B) $15.75
• C) $19.67
• D) $13.57

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Definitions:

Persuasive Request

is a communication designed to convince the recipient to take a specific action that the sender desires, using logical and emotional appeals.

Logical Case

A method of reasoning or argument that is well-structured and grounded in clear, sound principles.

Anger And Emotion

Feelings of displeasure or antagonism, often accompanied by physiological and psychological responses.

Valid Request

A legitimate or reasonable demand or enquiry made by an individual or group.