Suppose That a Stock Trader Has Bought $20,000 Worth of Securities.He

question 11

Multiple Choice

Suppose that a stock trader has bought $20,000 worth of securities.He kept $10,000 in an initial margin in his brokerage account and borrowed the rest from his broker.The maintenance margin is 25 percent.The value of the account has fallen to $3,500.The account holder has to come up with a variation margin of:

• A) $1,000
• B) $1,500
• C) $3,500
• D) $6,500
• E) None of these answers are correct.

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Ointment

A smooth, greasy substance applied to the skin for healing or cosmetic purposes.

Parenteral

A route of administering medications or nutrients bypassing the digestive system, often by injection through various means such as intravenous, intramuscular, or subcutaneous.

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A medical specialty, often abbreviated as ENT, that deals with disorders and conditions of the eye, ear, nose, and throat.

Milliliter

A unit of volume in the metric system, equal to one-thousandth of a liter, commonly used to measure liquids.