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Nelson Purchased 1,600 Shares of Stock for $18

Question 69

Multiple Choice

Nelson purchased 1,600 shares of stock for $18.75 a share.The initial margin requirement is 70 percent and the maintenance margin is 40 percent.What is the maximum percent by which the stock price can decline before he receives a margin call?


A) 30 percent
B) 45 percent
C) 50 percent
D) 65 percent
E) 70 percent

Correct Answer:

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