Ask Question
6 May, 15:56

A customer has an existing margin account that shows the following:

Long market value: $100,000

Debit balance $60,000

If the market value declines to $60,000, the customer will receive a maintenance call for:

A. $5000

B. $10,000

C. $15,000

D. $20,000

+5
Answers (1)
  1. 6 May, 19:48
    0
    The answer is option C

    Explanation:

    Long Market Value - Debit = Equity %

    $100,000 $60,000 $40,000 40%

    If the market value declines to $60,000, the account will now show:

    Long Market Value - Debit = Equity %

    $60,000 - $60,000 = $0 (0%)

    Minimum margin is 25% of market value, i. e 25% of $60,000 = $15,000.

    Therefore the customer will receive a maintenance call for $15,000.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A customer has an existing margin account that shows the following: Long market value: $100,000 Debit balance $60,000 If the market value ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers