Solved

Exhibit 4.2 Use the Information Below for the Following Problem(S)

Question 62

Multiple Choice

Exhibit 4.2
Use the Information Below for the Following Problem(S)
Heidi Talbott has a margin account with a balance of $50,000. The initial margin deposit is 50 percent, and RC Industries is currently selling at $50 per share.
-Refer to Exhibit 4.2.If the maintenance margin is 25 percent,to what price can RC Industries stock price fall before Heidi receives a margin call?


A) $21.75
B) $23.33
C) $32.00
D) $33.33
E) None of the above

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions