A:

$150,000 long market value
$(100,000) debit balance
$50,000 credit balance
$5,000 SMA

No short interest at present Reg T margin requirements:
50% initial
25% maintenance

A. The owner of the account can expect a margin call.

B.
If the account owner wanted to buy $10,000 in stock, she would be able to do so only after depositing $5,000 in cash or $10,000 in securities.

C.
The equity in the account exceeds the margin requirement.

D.
The SMA funds cannot be withdrawn until the margin requirement is met.


Correct answer: C
The account is not below the maintenance margin requirement; there is enough cash in the SMA that the investor need not deposit additional funds.

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