You purchase on 50% margin, 150 shares of a stock with the following quotes: Bid Ask $24.00 $22 The maintenance margin set by your broker is 30%. Use this information to answer the question below. Let us say that the information above remains true, except that the security price changes as follows: Bid: $16, and Ask: $17. To satisfy the margin call, you could deposit an additional, in cash: O 120 O 84 Ⓒ264 O None of the above

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You purchase on 50% margin, 150 shares of a stock with the following quotes:
Bid
Ask
$24.00
$22
The maintenance margin set by your broker is 30%.
Use this information to answer the question below.
Let us say that the information above remains true, except that the security price changes as follows: Bid: $16, and Ask: $17.
To satisfy the margin call, you could deposit an additional
in cash:
O 120
84
O 264
O None of the above
Transcribed Image Text:You purchase on 50% margin, 150 shares of a stock with the following quotes: Bid Ask $24.00 $22 The maintenance margin set by your broker is 30%. Use this information to answer the question below. Let us say that the information above remains true, except that the security price changes as follows: Bid: $16, and Ask: $17. To satisfy the margin call, you could deposit an additional in cash: O 120 84 O 264 O None of the above
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