You recently purchased 900 shares of Western Timber stock for $38 a share.Your broker required a cash payment of $25,650,plus trading costs,for this purchase.What was the initial margin requirement?

Name: You recently purchased 900 shares of Western Timber stock for $38 a share.Your broker required a cash payment of $25,650,plus trading costs,for this purchase.What was the initial margin requirement?
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Question

Quizplus · Accepted Answer

Purchase cost = 900 × $38 = $34,200Initial margin percentage = $25,650/$34,200 = 75 percent

You Recently Purchased 900 Shares of Western Timber Stock for $38