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:

First Trimester

The initial three months of pregnancy, a critical period for fetal development.

Life-Support System

Technology or equipment designed to maintain human life under critical conditions by providing necessary conditions or vital functions.

Embryo

An early stage in the development of a multicellular organism, following fertilization and before fetal stage in mammals.

Amnion

Prenatal life-support system that is a bag or envelope containing a clear fluid in which the developing embryo floats.