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quise2ross
quise2ross
16.12.2020 • 
Business

Nadeem has a Margin Account with his Stock Broker with a 2:1 margin. He originally deposited $250,000 into the account and his broker lent him $250,000 so he purchased $500,000 worth of Bell Canada stock. He just received a margin call to inform him that his Bell stock has dropped to $450,000 and he is “out of margin”. What is the best way for Nadeem to bring his account back into line? Sell $50,000 worth of Bell stock and pay off $50,000 on the loan
Sell $75,000 worth of stock and pay off $40,000 on the loan.
Sell $25,000 worth of stock and pay off $25,000 on the loan.
Sell $10,000 worth of stock and pay off $10,000 on the loan.

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