exec2 question 5

5. 10.00 points om Read Mod Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $40 per share. The initial margin requirement was 50% (The margin account pays n A year later, the price of Internet Dreams has risen from $40 to $50, and the stock has paid a dividend of $2 per share a. What is the remaining margin in the account? Remaining margin $ b-1. What is the margin on the short position? Short margin b-2. the maintenance margin requirement is 30%, will Old Economy receive a margin cal? 10 Yes No c. What is the rate of retum on the investment? (Negative value should be indicated by a minus sign.) Rate of return References Books Resources