You have cash in your brokerage account in the amount of $198 000 and securities valued at $401 000. If you buy 300 shares of CNR at $64, how much more cash must you add to your account to cover the margin at 50 percent?

Question

Quizplus · Accepted Answer

The total value of securities and cash in the account is:
$198 000 + $401 000 = $599 000

Buying 300 shares of CNR at $64 would cost:
300 x $64 = $19 200

To cover the margin at 50%, we need to add:
($19 200) x 50% = $9600

Therefore, the total cash required in the account would be:
$19 200 + $9600 = $28 800

To find out how much more cash we need to add, we subtract the current cash in the account from the total required:
$28 800 - $198 000 = $10 100

Therefore, the answer is (C) $12 100.

You Have Cash in Your Brokerage Account in the Amount