go has borrowed $197,450 on margin to buy Apple, Inc. (AAPL), which is now trading at $133.75 per share. With this transaction, his initial percentage margin is 37%. His broker, Tyler, states, and Diego agrees, that the maintenance margin is 20%. Based on the given information, what is the equity value in account? A. $200,078.45. B. $174.850.67. C. $139.134.09. D. $115,962.70.
go has borrowed $197,450 on margin to buy Apple, Inc. (AAPL), which is now trading at $133.75 per share. With this transaction, his initial percentage margin is 37%. His broker, Tyler, states, and Diego agrees, that the maintenance margin is 20%. Based on the given information, what is the equity value in account? A. $200,078.45. B. $174.850.67. C. $139.134.09. D. $115,962.70.
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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Diego has borrowed $197,450 on margin to buy Apple, Inc. (AAPL), which is now trading at $133.75 per share. With this transaction, his initial percentage margin is 37%. His broker, Tyler, states, and Diego agrees, that the maintenance margin is 20%. Based on the given information, what is the equity value in account?
A.
$200,078.45.
B.
$174.850.67.
C.
$139.134.09.
D.
$115,962.70.
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