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You Purchased 1,000 Shares of Common Stock on Margin at $30

Question 34

Multiple Choice

You purchased 1,000 shares of common stock on margin at $30 per share. Assume the initial margin is 50%, and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $24? Ignore interest on margin.


A) 0.33
B) 0.375
C) 0.20
D) 0.23
E) 0.25

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