Answer:
D) 7200 or 7300
Explanation:
Initial Margin Rate = 60%
No. of Shares sold = 200
Price of Shares = $60
Amount of Sale = 200 x $60 = $12,000
Initial Investment = Amount of Sale x Initial Margin
Initial Investment = $12,000 x 60%
Initial Investment = $7,200
So the correct option is D) 7200 or 7300 as Initial margin is the minimum amount as a security required to trade in the market. An investor required 60% of the deal to deposit as Initial margin.
