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3 Old Economy Traders opened an account to short-sell 2,700 shares of Internet Dreams at $75 per share. The initial margin requirement was 50%. (The
3 Old Economy Traders opened an account to short-sell 2,700 shares of Internet Dreams at $75 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $75 to $85, and the stock has paid a dividend of $1.50 per share. 10 points a. What is the remaining margin in the account? (Round your answer to the nearest whole dollar.) Remaining margin eBook Print References b. If the maintenance margin requirement is 30%, will Old Economy receive a margin call? No O Yes c. What is the rate of return on the investment? (Round your answer to 2 decimal places. Negative value should be indicated by a minus sign.) Rate of return %
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