Answer:
$172,000
Explanation:
Given that,
A person having a amount today for investment = $86,000
Initial margin requirement = 50 percent
Therefore,
Maximum dollar purchase he can make is as follows:
= Amount of money available ÷ Initial margin requirement
= $86,000 ÷ 50%
= $86,000 ÷ 0.50
= ($86,000 × 100) ÷ 50
= $172,000
Therefore, the maximum amount of dollar purchase is $172,000.
