Which of the Following Prices Is Most Likely to Be

question 89

Multiple Choice

Which of the following prices is most likely to be seen if a firm is using odd-even pricing?

• A) $9.00
• B) $2.03
• C) $6.60
• D) $99.95
• E) $100.00

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Definitions:

Initial Margin

The minimum amount of equity required to enter into a position as security for performance, used in futures and margin trading.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account.

Margin Call

A demand by a broker that an investor deposit additional money or securities to cover possible losses.

Initial Margin

The minimum amount of equity that must be provided by an investor when purchasing securities on margin, acting as a down payment on the purchase.