If Jamie wanted to purchase Disney stock using borrowed money and had $4,000 of her own money to use, what is the maximum amount of stock she can purchase with a margin requirement of 50 percent?
A) $2,000
B) $4,000
C) $0
D) $8,000
E) $6,000

Question

Quizplus · Accepted Answer

With a margin requirement of 50%, Jamie can purchase up to twice the amount of her own money. Therefore, she can purchase a total of $8,000 worth of Disney stock (2 x $4,000).

If Jamie Wanted to Purchase Disney Stock Using Borrowed Money