Sun Lee Purchased 1,500 Shares of Franklin Metals Stock for $16.80

question 27

Multiple Choice

Sun Lee purchased 1,500 shares of Franklin Metals stock for $16.80 a share.The stock was purchased with an initial margin of 65 percent.The maintenance margin is 30 percent.The stock is currently selling for $17.10 a share.What is the minimum dollar amount of equity that he must have in this stock today to avoid a margin call?

• A) $7,544
• B) $7,695
• C) $7,760
• D) $7,808
• E) $7,973

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Definitions:

Clade

A group of organisms containing a common ancestor and all its descendants; a monophyletic group.

Common Ancestor

The latest common ancestor shared directly by all members in a specific group.

Organisms

Any individual living thing that can react to stimuli, reproduce, grow, and maintain homeostasis.

DNA Sequences

The precise order of nucleotides within a DNA molecule, which determines the genetic information carried by that DNA.