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Finra Series-7 Exam - Topic 7 Question 46 Discussion

Under an initial federal requirement of 70% equity, Bubba purchases 100 shares of XYZ at $40 per share and wishes to satisfy the margin call by delivering another listed security into his account.He may do so by depositing stocks with a market value of:
A) $9,333
B) $5,714
C) 4,000
D) $2,800

Finra Series-7 Exam - Topic 7 Question 46 Discussion

Actual exam question for Finra's Series-7 exam
Question #: 46
Topic #: 7
[All Series-7 Questions]

Under an initial federal requirement of 70% equity, Bubba purchases 100 shares of XYZ at $40 per share and wishes to satisfy the margin call by delivering another listed security into his account.

He may do so by depositing stocks with a market value of:

Show Suggested Answer Hide Answer
Suggested Answer: A

$9,333. If Bubba were depositing cash, he would need $2,800 (70% x $4,000). Since he is depositing stock, he would have to deposit enough with loan value of $2,800. To arrive at this, divide $2,800 by the 30% loan value to obtain $9,333.


by Benedict at May 09, 2022, 05:57 PM

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Glenn
10 months ago
I thought it would be lower, like $5,714.
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Regenia
10 months ago
Wait, are we sure about that? Seems a bit high.
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Raul
11 months ago
Yeah, $9,333 sounds right to me too!
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Estrella
11 months ago
I think he needs to deposit $9,333 to meet that 70% requirement.
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Josefa
11 months ago
The total cost of the shares is $4,000.
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Zona
11 months ago
I vaguely recall that the margin call amount is based on the total value of the shares. I hope I remember the right formula!
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Janna
11 months ago
If the initial requirement is 70%, then Bubba needs to cover that. I feel like I might be overthinking the numbers.
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Avery
11 months ago
I think we need to find out how much equity Bubba has after buying the shares. I practiced a similar question last week.
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Pearline
11 months ago
I remember something about calculating the equity requirement, but I'm not sure how to apply it here.
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Eric
11 months ago
Ah, I see now. The key is to create a new target group with the instances in both Availability Zones. That way, the NLB can properly distribute traffic across all the available instances. This seems like the most straightforward and operationally efficient solution.
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Kris
11 months ago
I'm a bit confused by this question. I'm not sure if a network peering or SDN solution would really be the best fit here. I think I'll go with the IPAM solution, as that seems to be the most relevant option based on the information provided.
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Linsey
11 months ago
Wasn't there something about positive reinforcement in class? I'm not completely certain, but I think options B and D touch on how the teacher's reactions might influence outcomes.
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