Two Months Ago, Trevor Purchased 500 Shares of Stock at a Cost

question 60

Multiple Choice

Two months ago, Trevor purchased 500 shares of stock at a cost per share of $74.20. The purchase was made on margin with an initial margin requirement of 65 percent. Trevor pays 1.6 percent over the call money rate of 4.8 percent. What will his total dollar return be on this investment if he sells his shares today at a price per share of $73.40? Ignore dividends.

• A) -$548.60
• B) -$539.67
• C) -$534.95
• D) -$574.87
• E) -$591.19

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Definitions:

Prepuce

A fold of skin that covers the head of the penis in males and the clitoris in females; commonly referred to as the foreskin in males.

Cremaster Muscles

Muscles that cover the testes, involved in the reflex action of moving the testicles closer to or further from the body to regulate temperature.

Dartos Muscles

Smooth muscle fibers found in the scrotum that regulate temperature by contracting and relaxing, affecting the testicles' proximity to the body.

Scrotal Skin

The thin, external skin that covers the scrotum, which is the pouch that contains and protects the testicles, regulating their temperature for proper sperm production.