You recently purchased 200 shares of stock at a cost per share of $22.25.The initial margin requirement on this stock is 75 percent and the maintenance margin is 50 percent.The stock is currently valued at $24.00 a share.What is your current margin position? Ignore margin interest.
A) 73.01 percent
B) 73.83 percent
C) 74.95 percent
D) 75.69 percent
E) 76.82 percent

Question

Quizplus · Accepted Answer

Margin loan = 200 × $22.25 × (1 - 0.75) = $1,112.50
Current stock value = 200 × $24.00 = $4,800
Current equity = $4,800 - $1,112.50= $3,687.50
Current margin = $3,687.50 / $4,800 = 76.82 percent

You Recently Purchased 200 Shares of Stock at a Cost