You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $46. You

Question

You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $46. Your broker requires you to deposit $16,500.

What is the initial margin requirement? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

You purchase 700 shares of 2nd Chance Co. stock on margin at a price of $46. Your broker requires you to deposit $16,500.

Explanation / Answer

Total Value of the share=700*46 32200 Amount deposited 16500 1>Margin Loan Amount=32200-16500 15700 2>Margin Requirement % =(16500/32200)*100 51.24

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