<u>The right answer is:</u>
A. Investors purchased the stocks with little cash down, if the price dropped the investor had to repay the loan.
<u>Explanation: </u>
<em>Buying on margin is when you take out a loan to buy a stock, this process is also called leveraging your position, it basically means having a collateral. </em>
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<em>When you buy on margin the stocks you buy are kept as collateral until you pay off the loan that makes them extremely risky.</em>
<span>Assuming that this is referring to the same list of options that was posted before with this question, the best option is "exercise" since it can clear the mind. </span>
