Yvette Recently Purchased 500 Shares of Stock at a Cost

question 54

Multiple Choice

Yvette recently purchased 500 shares of stock at a cost per share of $43.50.The initial margin requirement on this stock is 75 percent and the maintenance margin is 40 percent.The stock is currently valued at $44.75 a share.What is her current margin position? Ignore margin interest.

• A) 74.29 percent
• B) 74.78 percent
• C) 75.70 percent
• D) 76.03 percent
• E) 76.14 percent

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Definitions:

Army Corps of Engineers

A federal agency under the Department of Defense in the United States, responsible for public engineering, design, and construction management, including improvements to natural resources and infrastructure.

Clean Air Act

A wide-ranging federal legislation in the United States designed to control emissions from both stationary and mobile sources in order to safeguard public health and the environment.

Acid Rain

Precipitation containing harmful amounts of sulfuric and nitric acids resulting from the atmospheric emission of sulfur dioxide and nitrogen oxides.

Scrubbers

Pollution control devices designed to remove particulates and/or gases from industrial exhaust streams.