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:

Pure Rent

The income derived from the inherent attributes of a resource or property, exclusive of any improvement made by human effort.

Reproducible Resources

Resources that can be grown, naturally replenished, or reproduced to sustain their availability over time, unlike finite resources.

Capital Goods

Long-term physical assets utilized by businesses to produce goods and services.

Single Tax

A tax system with only one type of tax, often proposed to simplify the tax structure and eliminate inefficiencies.