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3. Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. The initial margin requirement was 50%.
3. Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of internet Dream has risen from $40 to $48, and the stock has paid a dividend of $3 per share b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call? 3. Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams from the previous problem. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of internet Dream has risen from $40 to $48, and the stock has paid a dividend of $3 per share b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call
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