Old Economy Traders opened an account to short sell 1,000 shares of Internet Dreams at $42 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 $42 to $53.

25. [For this question, use the information given regarding Old Economy Traders up above]What was the initial margin you had to add to the account (the amount you had to bring to the broker to start the trade)? A. $42,000

B. $21,000

C. $53,000

D. $10,000

26. [For this question, use the information given regarding Old Economy Traders up above]What was the amount you walk away with when you close the short sale position? A. $42,000 B. $21,000

C. $53,000

D. $10,000