Your client owns 1,000 shares of ePlace stock. She purchased these shares for $24 per share with

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Question:

Your client owns 1,000 shares of ePlace stock. She purchased these shares for $24 per share with initial margin of 50%. There is 25% maintenance margin requirement. ePlace stock price has dropped to $17 per share. Will there be a margin call? If so, how much?

a. $1,500

b. $2,750

c. $3,250

d. No margin call required