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Finra Exam Series-7 Topic 5 Question 61 Discussion
Actual exam question for
Finra's
Series-7 exam
Question #: 61
Topic #: 5
[All Series-7 Questions]
Topic #: 5
Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed:
100 ABC $30
200 XYZ $70
200 QBB $40
200 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
Bubba wants to buy 100 shares of DUM at $30 per share and 100 shares of OUT at $120. How much how much value of additional securities must Bubba deposit in lieu of depositing cash?
Suggested Answer:
C
$9,000. Since the required cash to deposit is $4,500 and Reg T is 50%, Bubba may deposit $9,000 of securities.
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