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Suppose an investor initially pays 7,000 USD towards the purchase of 10,000 USD worth of stock...

Suppose an investor initially pays 7,000 USD towards the purchase of 10,000 USD worth of stock (100 shares at 100 USD per share). Borrowing the remaining 3,000 USD from a broker, with a maintenance margin of 30%, What is the stock price that would make the investor get a margin call?

Select one:

a. 42.8 USD

b. 25.6 USD

c. 112.7 USD

d. 76.4 USD

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