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You Purchased 1000 Shares of CSCO Common Stock on Margin

Question 43

Multiple Choice

You purchased 1000 shares of CSCO common stock on margin at $19 per share. Assume the initial margin is 50%, and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.


A) $12.86
B) $15.75
C) $19.67
D) $13.57

Correct Answer:

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