CFP Exam Questions with Correct

Answers

Lisa purchased 500 shares of XYZ stock trading at $40 per share, with an initial margin

requirement of 60% and a maintenance margin of 30%. At What price would Lisa receive a

margin call?

A. $20

B. $22.86

C. $57.14

D. $80.00 - Answer-B. $22.86

40*(1-.60)/ 1-.30= 22.86

Lareen purchased 1000 shares of CWC stock for $80 per share with an initial margin

requirement of 65% and a maintenance margin of 40%. Assume the stock price falls to $30 per

shar...
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