Suppose that you just purchased 150 shares of XYZ stock for $60 per share. a. If the initial margin requirement is 71.00%, how m

Question

3 years ago

9

uch money must you borrow?

1 answer:

Kisachek [45] · Answer 1 · 2022-05-07T23:04:27+03:00

Answer:

$2,610

Explanation:

Calculation for how much money you must borrow.

Using this formula

Amount to be borrowed =( Purchased shares* Per share price*(Initial margin requirement percentage)

Let plug in the formula

Amount to be borrowed= 150 shares*$60 per shares *(1-0.71)

Amount to be borrowed=$9,000*(0.29)

Amount to be borrowed=$2,610

Therefore how much money you must borrow will be $2,610