You purchased 100 shares of common stock on margin at $40 per share. Assume the initial margin is 50%, and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $25? Ignore interest on margin.
A) 0.33
B) 0.55
C) 0.20
D) 0.23
E) 0.25

Question

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The Answer of You purchased 100 shares of common stock on margin at $40 per share. Assume the initial margin is 50%, and the stock pays no dividend. What would the maintenance margin be if a margin call is made at a stock price of $25? Ignore interest on margin.
A) 0.33
B) 0.55
C) 0.20
D) 0.23
E) 0.25

You Purchased 100 Shares of Common Stock on Margin at $40