You Purchased 800 Shares of Stock for $49

question 87

Multiple Choice

You purchased 800 shares of stock for $49.20 a share.The initial margin requirement is 65 percent and the maintenance margin is 35 percent.What is the lowest the stock price can go before you receive a margin call?

• A) $9.27
• B) $14.54
• C) $17.22
• D) $21.88
• E) $26.49

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Definitions:

Construct Validity

The degree to which a test or instrument measures the theoretical construct it is intended to measure.

Correlate

To possess a reciprocal relationship or link, where one element influences or relies upon another.

Measures

Tools or instruments used to quantify or categorize variables, typically for the purpose of research or assessment.

Test Validity

The degree to which a test accurately measures what it intends to measure.