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?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Question 6
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?
O 1.$71.34
O 2.71.43%
O 3. $28.57
O4.17.43%
Transcribed Image Text:Question 6 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? O 1.$71.34 O 2.71.43% O 3. $28.57 O4.17.43%
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