Error in Mock Exam answers? something, errors, question

thecfawannabe

Hi,
Did anyone find any errors in the mock exam answer keys?
I am not sure if this is one. But for question no. 85 in the AFTERNOON session, I thought it was answer C, but the mock exam answer keys says answer A.
Am I missing something or it’s an error?

jarobi04

It is A
Why do you think its C?

HuskyGrad2010

Where does the $4000 come from? The question doesn’t say anything about the initial margin requirement.

bodhisattva

never mind, i got it.

agulani

Heres how i did it
Initial deposit is 5000, first purchase is 9000. That means initial margin % is 5/9 = 55.555
Plug into formula : Price bought(1initial margin requirement)/(1maint. margin)
=30*(1.55555)/(1.3)

joemoran

Yup! That’s how it should be done.