Question
Bill opened an account to short-sell 800 shares of Shady Biz, Inc. at $97.00 per share. The initial margin requirement was 40.00%. (The margin account
Bill opened an account to short-sell 800 shares of Shady Biz, Inc. at $97.00 per share. The initial margin requirement was 40.00%. (The margin account pays no interest.) A year later, the price of Shady Biz, Inc. has risen from $97.00 to $103.00, and the stock has paid a dividend of $1.50 per share. What is the remaining margin in the account? [ Select ] ["$27,440.00", "$25,040.00", "$31,040.00", "$26,240.00"] If the maintenance margin requirement is 30%, will Bill receive a margin call? [ Select ] ["Yes", "No"] What is the rate of return on the investment?
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