Suppose that you have $82,500 to invest and would like to purchase 1500 shares o

Question

Suppose that you have $82,500 to invest and would like to purchase 1500 shares of ABC Corp's shares which are currently trading for $100.00 per share. Law requires that all brokers have an Initial margin of 50% but your broker demands a 55% initial margin. Also, your broker requires 35% maintenance margin at all times. The _____ will be $150,000, (the) _____ will put up the initial $67,500 and (the) ____ will put up the remaining $82,500.

a) broker, total position, you

b) broker, you, total position

c) total position, broker, you

d) total position, you, broker

Explanation / Answer

Solution:

The total position will be $ 150,000. You will put $ 67,500 and the broher will put up remaining $ 82,500.

Thus the answer to the above question is d) total position,you,broker.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.