You Purchased 100 Shares of IBM Common Stock on Margin

question 64

Multiple Choice

You purchased 100 shares of IBM common stock on margin at $70 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)$21
• B)$50
• C)$49
• D)$80
• E)none of the above

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