You Recently Purchased 900 Shares of Western Timber Stock for $38

question 81

Multiple Choice

You recently purchased 900 shares of Western Timber stock for $38 a share.Your broker required a cash payment of $25,650,plus trading costs,for this purchase.What was the initial margin requirement?

• A)60 percent
• B)65 percent
• C)70 percent
• D)75 percent
• E)80 percent

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Definitions:

Sodium Ethoxide

A strong base formed by the reaction of ethanol with sodium metal, commonly used in organic synthesis.

Transesterification

A chemical reaction in which an ester is transformed into a different ester through the exchange of alkyl groups, important in biodiesel production.

Ethyl Acetate

A volatile, colorless liquid used as a solvent and in the manufacture of products such as paints, coatings, and adhesives.

N-Propanol

Also known as 1-propanol, a primary alcohol with the formula CH3CH2CH2OH, utilized as a solvent and in the synthesis of other chemicals.