34. Joe Banks purchased 300 shares of a $42 stock in his margin account. His broker charges $6.00 in commission for an unlimited amount of shares, and has a policy of 50% initial margin and 35% maintenance margin. Three days later on settlement day, Joe delivered a check to the broker in the amount of $6.303. One week went by and the stock suddenly fell to $26.00. How much will Joe have to pay in a margin call? A. B. C. c D. E. Make your selection: $ $ $ $ $ 953 983 1,023 1,233 1,523
34. Joe Banks purchased 300 shares of a $42 stock in his margin account. His broker charges $6.00 in commission for an unlimited amount of shares, and has a policy of 50% initial margin and 35% maintenance margin. Three days later on settlement day, Joe delivered a check to the broker in the amount of $6.303. One week went by and the stock suddenly fell to $26.00. How much will Joe have to pay in a margin call? A. B. C. c D. E. Make your selection: $ $ $ $ $ 953 983 1,023 1,233 1,523
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:34. Joe Banks purchased 300 shares of a $42 stock in his margin account. His broker charges $6.00
in commission for an unlimited amount of shares, and has a policy of 50% initial margin and 35%
maintenance margin. Three days later on settlement day, Joe delivered a check to the broker in
the amount of $6.303. One week went by and the stock suddenly fell to $26.00.
How much will Joe have to pay in a margin call?
A.
B.
C.
D.
E.
Make your selection:
$
$
$
A AV
$
$
953
983
1,023
1,233
1,523
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