Pls help me in text so i will rate please help Question 6Assume that you bought 100 shares of stock X at $50 per share in your margin account that has an initial margin of 60%. What would be the actual marginif the price rises to $70?O 1.$71.34O 2.71.43%O 3. $28.57O4.17.43%

This question is asking about the concept of margin in a margin account. When you buy stock in a…

Answered: Assume that you bought 100 shares of…

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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Assume that you bought 100 shares of stock X at $50 per share in your margin account that has an initial margin of 60%. What would be the actual margin if the price rises to $70?