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Assume you purchased 900 shares of XYZ common stock on margin at $90 per share from your broker. If the initial margin is 65%, the amount you borrowed from the broker is:_______. A. $109,350 B. $81,000
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Assume you purchased 900 shares of XYZ common stock on margin at $90 per share from your broker. If the initial margin is 65%, the amount you borrowed from the broker is:_______.

A. $109,350
B. $81,000
C. $52,500
D. $28,350
E. $22,500

User Jonathan Winks
by
4.8k points

2 Answers

1 vote

Answer:

514444$000000

Step-by-step explanation:

User Cumatru
by
5.2k points
2 votes

Answer:

See below.

Step-by-step explanation:

Amount Borrowed = Shares * Price * (1-Initial Margin)

900*90*(1-0.65) =81000*28350 = $28,350

Answer = $ 28,350 (D)

User JeJo
by
4.7k points
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