You have opened a stock portfolio account with a brokerage firm. You have only purchased stocks...

You have opened a stock portfolio account with a brokerage firm. You have only purchased stocks of Home Depot. You purchased 200 shares of HD at $178/share.

a. Suppose the initial margin requirement is 50%. What is the maximum amount that you can borrow?

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Expert Solution

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Margin = Investment * Initial margin

= (200 * 178) * 0.50

= 17800

Max amount you can borrow = 17800

If there is any query, ask in the comment section.

jeff jeffy answered 2 years ago

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