Matt Short Sold 500 Shares of Tall Pines Stock at $19

question 20

Multiple Choice

Matt short sold 500 shares of Tall Pines stock at $19 a share at an initial margin of 65 percent. The maintenance margin is 35 percent.What is the highest the stock price can go before he receives a margin call?

• A)$20.12
• B)$21.48
• C)$23.22
• D)$24.07
• E)$25.16

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Definitions:

Rescission

The revocation of a contract or agreement.

Damages

Monetary compensation required to be paid as a result of loss or injury due to a breach of contract or a tort.

Standard Form Contract

A pre-prepared contract where most terms are set in advance with little or no negotiation between parties, typically favoring the drafter of the contract.

Sale of Goods Act

A legal statute that governs the sale and purchase of goods, ensuring certain standards and rights in transactions.