You purchased 1000 shares of IBM common stock on margin at $140 per share from yourbroker. If the initial margin requirement is 60%, then the amount you would need to borrowfrom the broker is$84,000$75,000O $56,000$49,000

Number of shares purchased = 1000Price per share = $140Initial margin % = 60%

Answered: You purchased 1000 shares of IBM common…

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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Please answer is 24840, only post if your answer comes this with explanation and concept. Thabks!
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You purchased 1000 shares of IBM common stock on margin at $140 per share from your broker. If the initial margin requirement is 60%, then the amount you would need to borrow from the broker is O $84,000 $75,000 $56,000 $49,000