Question
De Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $36 per share. She borrows $4,500 from her broker to help
De Trader opens a brokerage account and purchases 300 shares of Internet Dreams at $36 per share. She borrows $4,500 from her broker to help pay for the purchase. The interest rate on the loan is 11%.
a.What is the margin in De's account when she first purchases the stock?
Margin$
b-1.If the share price falls to $26 per share by the end of the year, what is the remaining margin in her account?(Round your answer to 2 decimal places.)
Remaining margin%
b-2.If the maintenance margin requirement is 30%, will she receive a margin call?
YesNo
c.What is the rate of return on her investment?(Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)
Rate of return%
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