The stock price fall before you would get margin call

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Reference no: EM131603591

1. You just purchased 1,000 shares of WMT stock at $40 per share. What would your rate of return be if after 1 year the stock price increases to $45 and your initial percentage margin was .40?

a. 33%

b. 32.3%

c. 31.25%

d. 30.28%

2. You have just purchased 100 shares of Ford Motor at $50 per share on margin. The initial margin requirement is 50 percent. If the maintenance margin is 40 percent, how far could the stock price fall before you would get a margin call?

a. $41.67

b. $40.10

c. $36.34

d. $38.90

Reference no: EM131603591

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