Question
In: Finance
Nancy purchased $80,000 worth of common stock by borrowing $32,000 from her broker. She paid the...
Nancy purchased $80,000 worth of common stock by borrowing $32,000 from her broker. She paid the rest to satisfy the initial margin requirement. The initial stock price is $160 per share. The maintenance margin requirement is 45%. The broker charges 8% on the margin loan. What is the initial margin requirement?
| A. |
50.0% |
|
| B. |
73.3% |
|
| C. |
60.0% |
|
| D. |
66.7% |
Solutions
Expert Solution
Initial Margin Requirement = (80,000 - 32,000)/80,000
Initial Margin Requirement = 60.0%
Option C is co
jeff jeffy answered 2 years agoRelated Solutions
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