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Oid Economy Traders opened an account to short - sell 1 , 0 0 0 shares of Internet Dreams at $ 4 0 per share.
Oid Economy Traders opened an account to shortsell shares of Internet Dreams at $ per share. The initial margin requirement was The margin account pays no intarest. A year later, the price of internet Dreams has risen from $ to and the stock has paid a dividend or $ per share.
Aequired:
a What is the remaining margin in the account?
Ramrnaining margin
b What is the margin on the shart position?
Short margin
b If the maintenance margin requirement is will Old Economy receive a margin cal?
Yes
No
c What is the rete of return an the investment? Negative value should be indicated by a minus sign.
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