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help with these questions, the answer is wrong FIGURE 2.10 Stock options on Microsoft, September 4, 2019 Note: Microsoft stock price on this day was
help with these questions, the answer is wrong
FIGURE 2.10 Stock options on Microsoft, September 4, 2019 Note: Microsoft stock price on this day was $137.49. Source: Compiled from data downloaded from Yahoo! Finance. a-3. What is the rate of return on your position? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $95 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of internet Dreams has risen from $95 to $101.00. and the stock has paid a dividend of $15.00 per share. Required: a. What is the remaining margin in the account? Answer is complete and correct. b-1. What is the margin on the short position? (Round your answer to 2 decimal places.) b-2. If the maintenance margin requirement is 30%, will Old Economy receive a margin call? Yes 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.) Step by Step Solution
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