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Suppose that you have $82,500 to invest and would like to purchase 1500 shares of ABC Corp's shares which are currently trading for $100.00 per share. Law requires that all brokers have an Initial margin of 50% but your broker demands a 55% initial margin. Also, your broker requires 35% maintenance margin at all times. The _____ will be $150,000, (the) _____ will put up the initial $67,500 and (the) ____ will put up the remaining $82,500.

a) broker, total position, you

b) broker, you, total position

c) total position, broker, you

d) total position, you, broker

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91568331

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