Mr. Stark borrowed £5,000  on margin to buy shares in Sainsburys, which was selling at £4.00 per share. Mr. Stark’s account starts at the initial margin requirement of 50%. The maintenance margin is 35%. How many shares did Mr. Stark buy? What will the actual margin be if the price increases to £4.60?

a. 1250 shares, 56.52%

b. 2500 shares, 56.52%

c. 1000 shares, 35%

d. 2500 shares, 60%

Answer rating: 100% (QA)

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