Yvette Recently Purchased 700 Shares of Stock at a Cost

question 73

Multiple Choice

Yvette recently purchased 700 shares of stock at a cost per share of $43.50. The initial margin requirement on this stock is 75 percent and the maintenance margin is 40 percent. The stock is currently valued at $45.10 a share. What is her current margin position? Ignore margin interest.

• A) 74.29 percent
• B) 74.78 percent
• C) 75.89 percent
• D) 76.03 percent
• E) 76.14 percent

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Definitions:

Strict Interpretation

The judicial practice of applying a narrow, literal, and precise reading of legal texts or statutes.

Force Majeure Clause

A contract term anticipating some catastrophic event usually exempting liability when such an event interferes with performance of the contract.

Catastrophic Event

An unexpected, large-scale disaster that causes significant -physical, economical or environmental damage or loss of life.

Condition Subsequent

A contract condition that, when it occurs, ends the party's obligation to perform under the contract.