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can you answer this question for me please and using excel sheet to answer ? Elan opened an account to short-sell 1,000 shares of Twister
can you answer this question for me please and using excel sheet to answer ?
Elan opened an account to short-sell 1,000 shares of Twister at $110 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Twister has risen from $110 to $117.00, and the stock has paid a dividend of $18.00 per share. a. What is the remaining margin (\$) in the account? b-1. What is the margin (\%) on the short position (Hint: don't forget dividends)? (Round your answer to 2 decimal places.) b-2. If the maintenance margin requirement is 30%, will Elan receive a margin call? (yes or no) c. What is the rate of return on the investment? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
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