Sam is purchasing 800 shares of RPT, Inc., stock at a price per share of $24.50. What is the minimum amount the Federal Reserve will require Sam to pay in cash for this purchase?
A)$4,488
B)$6,200
C)$9,800
D)$10,968
E)$11,960

Question

Quizplus · Accepted Answer

The minimum amount that the Federal Reserve requires an investor to pay in cash is 50% of the purchase price. Therefore, Sam needs to pay 50% x $24.50 x 800 = $9,800 in cash. Therefore, the correct option is C.

Sam Is Purchasing 800 Shares of RPT, Inc