Margin call price is the amount borrowed divided

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Reference no: EM131303359

1. Margin Call price is the amount borrowed divided by:

A. current value of the shares purchased x (1 – maintenance margin proportion)

B. current value of the shares purchased x (1 – initial margin proportion)

C. number of shares x (1 – maintenance margin proportion)

D. number of shares x (1 – initial margin proportion)

2. If a call option has a $10 strike price, and the underlying stock is trading at $11, then the option is considered:

A. at the money.

B. out of the money.

C. worthless.

D. in the money.

Reference no: EM131303359

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