How much money must Customer Smith deposit to meet the Regulation T call after purchasing 400 shares of EFG at $40?

Key points

• Customer Smith purchased 400 shares at $40 each, totaling $16,000.
• The margin requirement is 50%, so the required margin on the purchase is $8,000.
• Customer Smith had $6,000 in excess equity, resulting in a Regulation T call of $2,000.
• The deposit must be made within five business days after the trade date.