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Bubba’s margin account has $1,000 of SMA.

Bubba’s margin account has $1,000 of SMA. If he buys $20,000 of listed secu rities, how much fully paid margin stock must he deposit to respond to a Reg T requirement of 50%?

A.

$20,000

B.

$9,000

C.

10,000

D.

$18,000

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