The Stock of Clapton Industries Is Selling at a Price

question 60

Multiple Choice

The stock of Clapton Industries is selling at a price of $96 per share. You short 600 shares at an initial margin of 50 percent. If the maintenance margin is 30 percent, at what price will you receive a margin call?

• A) $111.96
• B) $116.19
• C) $114.32
• D) $110.77
• E) $115.09

Understand the concept and importance of relevant information in accounting decision-making.

Comprehend the principles of differential analysis and its advantages in decision-making.

Recognize the criteria for measuring objectives in quantitative terms in decision-making.

Distinguish between objectives, constraints, and opportunity costs in conflict resolution during decision-making.

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Definitions:

2D:4D Ratio

A physiological trait theorized to indicate exposure to certain hormones in the womb, measured by comparing the length of the index finger to the ring finger.

Prenatal Testosterone Exposure

The exposure of a fetus to testosterone levels while in the womb, which can influence a variety of developmental factors.

Nature-nurture Debate

A longstanding discussion concerning the relative importance of an individual's inherited traits (nature) versus environmental influences (nurture) in determining behavior and development.

Gene-environment Interaction

The complex interplay between genetic predisposition and environmental factors that influence the development and expression of traits and behaviors.