You are buying 200 shares of Never Buy Co. stock on the margin at a price of $55.Your broker requires you to deposit $6,500. What is the initial margin requirement inpercentage?65%.59%.35%.41%.50%.

Solution:Margin refers to the amount of money required to be deposited with the clearing house at…

Answered: You are buying 200 shares of Never Buy…

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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You are buying 200 shares of Never Buy Co. stock on the margin at a price of $55. Your broker requires you to deposit $6,500. What is the initial margin requirement in percentage? 65%. 59%. 35%. 41%. 50%.