Suppose you purchase 200 shares of Best Hat Corporation at $52 a share by making a margin deposit of 50%.If the maintenance margin is 30%,at what price will you receive a margin call?
A) $37.14
B) $37.95
C) $38.23
D) $38.76
E) $39.42

Question

Quizplus · Accepted Answer

0.30 = [(200)(P)- (0.50)(200)(52)]/[(200)(P)]
0.30 = [(200)(P)- 5,200]/[(200)(P)]
60P = 200P - 5,200
-140P = -5,200
P = $37.14

Suppose You Purchase 200 Shares of Best Hat Corporation at $52