CFA Practice Question
Minimum maintenance margin is the minimum proportion of ______.
B. the loan amount to the total value of the margined stock
C. the current value of the margined stock to the original purchase price of the margined stock
A. equity to the total value of the margined stock
B. the loan amount to the total value of the margined stock
C. the current value of the margined stock to the original purchase price of the margined stock
Correct Answer: A
If the percent margin hits the maintenance margin, a margin call will be issued immediately.
User Contributed Comments 1
User | Comment |
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robbiecow | The MM = (Collateral - Loan)/Collateral |