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D e Trader opens a brokerage account and purchases 1 0 0 shares of Internet Dreams at $ 6 0 per share. She borrows $
De Trader opens a brokerage account and purchases shares of Internet Dreams at $ per share. She borrows $ from her
broker to help pay for the purchase. The interest rate on the loan is
Required:
a What is the margin in Des account when she first purchases the stock?
b If the share price falls to $ per share by the end of the year, what is the remaining margin in her account?
Remaining margin
c If the maintenance margin requirement is will she receive a margin call?
Yes
No
d What is the rate of return on her investment? Negative value should be indicated by a minus sign. Round your answer to
decimal places.
Rate of return
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