You Purchased 100 Shares of KLM at $40 a Share

question 62

Multiple Choice

You purchased 100 shares of KLM at $40 a share by depositing the minimum amount of margin.If the initial margin requirement was 50% and the maintenance margin requirement is 30%,you will get a margin call if KLM's price falls to

• A)$12.
• B)$20.
• C)$29.
• D)$32.

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Definitions:

Trade Secrets

Intellectual property comprising confidential, non-public information providing a competitive edge.

Reverse Engineering

Reverse engineering is the process of deconstructing a product or system to understand its design, architecture, or to extract knowledge from the product for the purpose of reproducing or improving it.

Pharmaceuticals

Medicines and drugs developed for medical diagnosis, treatment, or prevention of diseases.

Universal Copyright Convention

An international treaty that provides copyright protection for creators in the signatory countries.