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Old Economy Traders opened an account to short - sell 1 , 0 0 0 shares of Internet Dreams at $ 1 0 0 per
Old Economy Traders opened an account to shortsell shares of Internet Dreams at $ per share. The initial margin requirement was The margin account pays no interest. A year later, the price of Internet Dreams has risen from $ to $ and the stock has paid a dividend of $ per share.
Required:
a What is the remaining margin in the account?
Remaining margin
b What is the margin on the short position? Round your answer to decimal places.
Short margin
b If the maintenance margin requirement is 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 decimal places.
Rate of return
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