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