Final answer:
A margin call will be required for the ePlace stock as the price has dropped below the maintenance margin requirement. The margin call amount will be $2,750.
Step-by-step explanation:
Based on the given information, a margin call will be required because the price of ePlace stock has dropped below the maintenance margin requirement.
To determine the margin call amount, we need to first calculate the equity in the investment. The equity is the current value of the investment minus the amount borrowed on margin. In this case, the current value of the investment is 1,000 shares multiplied by the current price of $13 per share, which equals $13,000. The amount borrowed on margin is 50% of the initial purchase price, which is 50% of $25 per share multiplied by 1,000 shares, which equals $12,500.
The equity in the investment is $13,000 - $12,500 = $500. Since the equity is below the maintenance margin requirement of 25% of the current value, a margin call will be required.
The margin call amount is calculated by subtracting the equity in the investment from the maintenance margin requirement. In this case, the maintenance margin requirement is 25% of the current value of $13,000, which is 0.25 * $13,000 = $3,250. Subtracting the equity of $500 from the maintenance margin requirement, we get $3,250 - $500 = $2,750.
Therefore, the margin call amount will be $2,750. Option B is the correct answer.