Theresa Has a Margin Account with a 60 Percent Initial

question 71

Multiple Choice

Theresa has a margin account with a 60 percent initial margin requirement and a 35 percent maintenance margin. What is the maximum dollar amount of stock she can purchase if her cash balance in the account is $33,400?

• A) $19,140.00
• B) $31,900.00
• C) $44,093.33
• D) $55,666.67
• E) $91,142.86

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Definitions:

Antabuse

A prescription medication used to treat alcohol dependency, creating an adverse reaction to alcohol consumption.

Stress Relief

Various methods or activities aimed at reducing the physical or emotional effects of stress on an individual.

Alcoholics

Individuals suffering from alcoholism, a physical and psychological dependence on alcohol.

Antabuse

A pharmaceutical drug used primarily to support the treatment of chronic alcoholism by producing an acute sensitivity to ethanol.