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need help Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $130 per share. The inital margin requirement was 50%.
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Old Economy Traders opened an account to short-sell 1,000 shares of Internet Dreams at $130 per share. The inital margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $130 to $14400, and the stock has paid a dividend of $22.00 per share. Required: a. What is the remaining margin in the account? b-1. What is the margin on the short position? (Koound 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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