You deposit $100,000 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing
Question:
You deposit $100,000 cash in a brokerage account and purchase $200,000 of stocks on margin by borrowing $100,000 from your broker, who requires a maintenance margin of 30 percent. Which of the following is the largest value for your stock holdings for which you will still receive a margin call?
a. $200,000
b. $160,000
c. $140,000
d. $120,000.
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Related Book For 
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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