Page 21 - FINAL CFA SLIDES DECEMBER 2018 DAY 13

Session Unit 13:
44. Market Structure & organisation (C/B/A/A/C/A/A)

tanties

B. Total purchase price = 1,000 × $50 = $50,000. Initial margin = 40% × $50,000 = $20,000. Margin loan = $30,000.
Commission = 1,000 × $0.01 = $10. Thus, the initial equity investment is $20,010