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Nutka1998 [239]
3 years ago
14

A customer opens a new margin account with the following position:

Business
1 answer:
galben [10]3 years ago
7 0

Answer:

$1,000

Explanation:

The above means that for every $1 increase in the market value in a long margin account, the SMA increases by $0.50

If the market value rises to $22,000, the account will show

Long market value - Debit = Equity % SMA

$22,000 - $10,000 = $12,000

Against $22,00 of market value, 50% can be borrowed or $11,000. Since the debit is $10,000, an additional $1,000 can be borrowed . This is the SMA

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(humility, egotism, will, discipline)

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Option B                      

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