How much cash do you have to add to your margin account

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Reference no: EM131603588

You have just purchased 100 shares of Ford Motor at $70 per share on margin. The initial margin requirement is 60 percent. The maintenance margin is 40 percent. If the stock price falls to $30, how much cash do you have to add to your margin account if you do not retire the debt?

a. $1,687.78

b. $1,666.66

c. $1,674.96

d. $1,656.32

Reference no: EM131603588

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